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Air France-KLM Warns of Flight Cancellations as a Strike Looms Air France-KLM Warns of Flight Cancellations as a Strike Looms
(about 1 hour later)
PARIS — Air France-KLM warned on Saturday that it was preparing to cancel roughly half of its scheduled flights on Monday because of a dispute with pilots, a move that has the potential to disrupt the travel plans of tens of thousands of passengers. PARIS — Air France-KLM warned on Saturday that it was preparing to cancel around 60 percent of its scheduled flights on Monday because of a dispute with pilots, a move that has the potential to disrupt the travel plans of tens of thousands of passengers.
Frédéric Gagey, chief executive of the company’s Air France unit, said negotiations with union leaders would continue through the weekend in the hope of averting a weeklong strike by the pilots, who are seeking to ensure that the 250 new pilots the group aims to hire for its budget carrier over the next five years will be employed under the same contract as pilots flying under the main Air France brand. Frédéric Gagey, chief executive of the company’s Air France unit, said negotiations with union leaders would continue through the weekend in the hope of reaching an agreement with pilots, who are seeking to ensure that the 250 new pilots the group aims to hire for its budget carrier over the next five years will be employed under the same contract as those flying under the main Air France brand.
“On the basis of what we have now, I think we shall only be able to operate roughly 50 percent of flights,” Mr. Gagey said in an interview on French radio. He added that such a high level of cancellations could expose the airline to as much as 15 million euros, or $19.4 million, in extra costs and lost revenue. But in a statement late Saturday, the company said that it expected 60 percent of Air France’s more than 3,800 pilots would strike on Monday, making extensive flight cancellations inevitable. Cédric Leurquin, an airline spokesman, said that around 85,000 passengers would soon be receiving e-mails or text messages alerting them to flight cancellations or delays.
In a French radio interview, Mr. Gagey said the strike, which the pilots threatened to extend through Sept. 22, could expose the airline to as much as 15 million euros, or $19.4 million, in extra costs and lost revenue a day.
Air France-KLM, Europe’s third-largest carrier by number of passengers after Ryanair and Lufthansa, announced plans on Thursday to double the size of its unprofitable low-cost unit, Transavia, by 2017. Transavia’s fleet would increase to more than 100 planes, from about 50 currently, with a goal of carrying 20 million passengers a year. The move is aimed at building the unit into a leading player on intra-European routes, better able to compete with rivals like Ryanair and EasyJet, which have a lower cost base.Air France-KLM, Europe’s third-largest carrier by number of passengers after Ryanair and Lufthansa, announced plans on Thursday to double the size of its unprofitable low-cost unit, Transavia, by 2017. Transavia’s fleet would increase to more than 100 planes, from about 50 currently, with a goal of carrying 20 million passengers a year. The move is aimed at building the unit into a leading player on intra-European routes, better able to compete with rivals like Ryanair and EasyJet, which have a lower cost base.
But the shift has angered many Air France pilots, who oppose moving a number of popular leisure routes to Transavia, where crew members are paid less.But the shift has angered many Air France pilots, who oppose moving a number of popular leisure routes to Transavia, where crew members are paid less.
A spokesman for the Syndicat National des Pilotes de Ligne, which represents 80 percent of Air France’s pilots, did not immediately return calls requesting comment on the progress of talks with management. Last week, the union’s president, Jean-Louis Barber, predicted the strike would cause “massive” travel disruptions, although some smaller unions have already said they would not participate.A spokesman for the Syndicat National des Pilotes de Ligne, which represents 80 percent of Air France’s pilots, did not immediately return calls requesting comment on the progress of talks with management. Last week, the union’s president, Jean-Louis Barber, predicted the strike would cause “massive” travel disruptions, although some smaller unions have already said they would not participate.
Mr. Gagey of Air France said the airline began reaching out to passengers late last week, inviting them to modify their reservations for flights next week at no cost.Mr. Gagey of Air France said the airline began reaching out to passengers late last week, inviting them to modify their reservations for flights next week at no cost.
“We have asked them, when possible, to change their tickets to avoid this period, which is a little uncertain,” he said.“We have asked them, when possible, to change their tickets to avoid this period, which is a little uncertain,” he said.
The strategic shift by Air France-KLM comes as most of the region’s full-service airlines are scrambling to reduce operating costs while fighting a two-front battle against budget carriers on European routes and fast-growing Middle Eastern rivals on lucrative long-distance services.The strategic shift by Air France-KLM comes as most of the region’s full-service airlines are scrambling to reduce operating costs while fighting a two-front battle against budget carriers on European routes and fast-growing Middle Eastern rivals on lucrative long-distance services.
It also follows a similar move by Lufthansa of Germany, which recently transferred many of its European or short-distance flights to two low-cost subsidiaries. Workers at those affiliates are paid less than their peers at Lufthansa, and many are on temporary contracts.It also follows a similar move by Lufthansa of Germany, which recently transferred many of its European or short-distance flights to two low-cost subsidiaries. Workers at those affiliates are paid less than their peers at Lufthansa, and many are on temporary contracts.