Wednesday, 24 September 2014

Air France-Transavia: Confusion over expansion plans

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".
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 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.
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 pilots are protesting against a transfer of jobs by the airline to its low-cost European carrier
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.

BBC Business

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