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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. |
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." |