This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-29309899

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
Air France suspends plan to expand Transavia Air France strikers reject offer to end dispute
(about 2 hours 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. Striking Air France pilots have rejected an offer by the airline aimed at resolving the dispute.
The decision was announced by the airline's boss, Alexandre de Juniac, as the dispute entered its eighth day. Their SNPL union said a proposed suspension of plans to develop the airline's budget carrier, Transavia, was a "smokescreen" that offered no more guarantees than previous offers.
The strike is the airline's longest since 1998 and has been costing the firm 15m euros (£11.8m; $19.3m) a day. Air France boss Alexandre de Juniac had said the planned expansion would be frozen until the end of the year.
Mr de Juniac said the aim was to allow time for "a thorough dialogue" and provide guarantees for unions. The eight-day-old strike is the airline's longest since 1998.
It has been costing the firm 15m euros (£11.8m; $19.3m) a day.
Mr de Juniac said the aim of the freeze was to allow time for "a thorough dialogue".
He told Le Monde newspaper the strike was "disastrous" for the airline.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."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."
'Obligatory move'
On Sunday, France's Transport Minister Alain Vidalies said the fate of Air France was "at stake" in the dispute.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. Air France said it expected to operate 41% of its flights on Monday.
On Sunday, the pilots' union, the SNPL, called on the French government to intervene and help resolve the dispute. On Sunday, 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 union said in a statement. "Management is playing for time, waiting for the movement to weaken."