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Air France-Transavia: Confusion over expansion plans | Air France-Transavia: Confusion over expansion plans |
(35 minutes later) | |
Air France has denied that plans to expand its Transavia low-cost airline have been dropped following a 10-day strike by its pilots. | Air France has denied that plans to expand its Transavia low-cost airline have been dropped following a 10-day strike by its pilots. |
The country's transport secretary, Alain Vidalies, had told RMC radio that "the Transavia Europe project has been abandoned by management". | The country's transport secretary, Alain Vidalies, had told RMC radio that "the Transavia Europe project has been abandoned by management". |
But Air France said the announcement was "premature", and that it had only proposed to suspend the scheme. | But Air France said the announcement was "premature", and that it had only proposed to suspend the scheme. |
The strike has been costing the airline up to 15m euros (£11.8m) a day. | The strike has been costing the airline up to 15m euros (£11.8m) a day. |
The dispute is over local employment terms, which can be less generous at European hubs than at core Air France operations. | The dispute is over local employment terms, which can be less generous at European hubs than at core Air France operations. |
On Tuesday, Air France said it expected to operate just 46% of its flights on Wednesday as a result of the strike, in which over half of its pilots are involved. | On Tuesday, Air France said it expected to operate just 46% of its flights on Wednesday as a result of the strike, in which over half of its pilots are involved. |
The budget airline Transavia, owned by Air France KLM, currently operates a fleet of 30 planes and carried 6.5 million passengers in 2013. | The budget airline Transavia, owned by Air France KLM, currently operates a fleet of 30 planes and carried 6.5 million passengers in 2013. |
Air France had been planning to expand the brand, and move some Air France jobs to the revamped airline. | Air France had been planning to expand the brand, and move some Air France jobs to the revamped airline. |
Earlier this month, Air France announced its intention to more than double the number of passengers carried on Transavia by 2017, and expand its operations outside France. | |
On Monday, Air France offered to freeze plans to expand the budget airline, but the pilots' union SNPL rejected the offer, describing the move as a "smokescreen". | |
Air France's chief executive Alexandre de Juniac has said the strike is "disastrous" for the airline. | |
His warning was echoed by Mr Vidalies, who said on Sunday that the fate of Air France was "at stake" in the dispute. |