PARIS - A pilots strike at Air France entered its second day on
Tuesday, with the two sides apparently no closer to resolving a dispute
over cost cuts that has forced the French carrier to cancel 60 percent
of flights.
The airline said it expected to operate "at least 40 percent of its
flights" on Wednesday, based on three fifths of pilots walking out, as
management prepared to hold further talks with unions later on Tuesday.
The pilots are carrying out a week-long strike over Air France's
plans to expand the low-cost operations of its Transavia brand by
setting up foreign bases to fight back against fierce competition from
European low-cost airlines.
"We're continuing to negotiate, we have made proposals, we have heard
the concerns of pilots who imagined that Transavia France could
suddenly replace all of Air France across France," airline chief
Frederic Gagey told Europe 1 radio.
The expansion of Transavia is part of a new strategic plan unveiled
last week aimed at boosting earnings that sees Transavia having a fleet
of 100 jets by 2017, up from about 50 now, and more than doubling
passengers to 20 million, with a goal of lifting it out of the red in
2018.
Gagey sought to reassure pilots, saying the Transavia fleet would be
limited to 30 aircraft in France and that the idea was not to replace
Air France but to complete the company's armoury "to attack a new
market, the leisure market".
But he ruled out giving Transavia pilots the same contracts as Air France colleagues.
Pay and conditions for pilots switching to Transavia are seen as the
biggest roadblock in the dispute, which Air France has said is costing
it about $12.95 to $19.43 million a day.
Shares in parent group Air France-KLM were down 3.9 percent on Tuesday for a two-day drop of 7 percent.
Gagey said he still hoped to reach operating break even over the full
year, although "the chances are diminishing as the strikes go on".
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