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Air France suspends plan to expand Transavia Air France suspends plan to expand Transavia
(about 1 hour later)
Air France has said it is suspending until December its plan to develop its budget carrier, Transavia, in an effort to end a pilots' strike over the move.Air France has said it is suspending until December its plan to develop its budget carrier, Transavia, in an effort to end a pilots' strike over the move.
The decision was announced by the airline's boss, Alexandre de Juniac, as the dispute entered its eighth day.The decision was announced by the airline's boss, Alexandre de Juniac, as the dispute entered its eighth day.
The strike is the airline's longest since 1998 and has been costing the firm 15m euros (£11.8m; $19.3m) a day.The strike is the airline's longest since 1998 and has been costing the firm 15m euros (£11.8m; $19.3m) a day.
On Sunday, Transport Minister Alain Vidalies said the fate of Air France was "at stake" in the dispute. Mr de Juniac said the aim was to allow time for "a thorough dialogue" and provide guarantees for unions.
He told Le Monde newspaper the strike was "disastrous" for the airline.
But he added: "This arrangement must not call into question our ambition to develop Transavia, which is one of the key sources of growth for the Air France-KLM group."
On Sunday, France's Transport Minister Alain Vidalies said the fate of Air France was "at stake" in the dispute.
Pilots are protesting over the firm's plan to expand Transavia because they fear it will drive down their wages.Pilots are protesting over the firm's plan to expand Transavia because they fear it will drive down their wages.
"There must be a positive approach in this situation, otherwise I think that it's the fate of the company that could be at stake," Mr Vidalies told France Info radio."There must be a positive approach in this situation, otherwise I think that it's the fate of the company that could be at stake," Mr Vidalies told France Info radio.
"The low-cost [sector] is not a choice, it's an obligatory move, that's reality. I think pilots are fully aware of this," he said."The low-cost [sector] is not a choice, it's an obligatory move, that's reality. I think pilots are fully aware of this," he said.
On Monday, Air France expects to operate 41% of its flights.On Monday, Air France expects to operate 41% of its flights.
On Sunday, the pilots' union, the SNPL, called on the French government to intervene and help resolve the dispute.On Sunday, the pilots' union, the SNPL, called on the French government to intervene and help resolve the dispute.
"Talks have reached a complete impasse," the SNPL said in a statement. "Management is playing for time, waiting for the movement to weaken.""Talks have reached a complete impasse," the SNPL said in a statement. "Management is playing for time, waiting for the movement to weaken."