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Air France-Transavia: Confusion over expansion plans Air France to resume talks with striking pilots
(about 9 hours 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 said it will resume talks with striking pilots in a row over pay and conditions.
The country's transport secretary, Alain Vidalies, had told RMC radio that "the Transavia Europe project has been abandoned by management". A spokesman said the company wished "to reach a rapid resolution to the conflict".
But Air France said the announcement was "premature", and that it had only proposed to suspend the scheme. Earlier French transport secretary, Alain Vidalies, caused confusion by saying that plans to expand its Transavia low-cost airline had been dropped, following the 10-day strike.
But this was swiftly denied by Air France.
The airline said the announcement was "premature", and that it had only proposed to suspend the scheme.
Pilots are unhappy at the lower rates of pay offered by the expanding budget operation compared with core Air France services.
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. On Wednesday, Air France said it expected to operate just 47% of its flights on Thursday 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.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".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.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. His warning was echoed by Mr Vidalies, who said on Sunday that the fate of Air France was "at stake" in the dispute. The government has a 16% stake in the airline.