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Air France-KLM to press ahead with low-cost brand in France

Plan to boost its Transavia brand remains 'on the table' says airline despite opposition from pilots who staged costly two-week strike.

La rédaction de Mediapart

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Air France-KLM is pressing ahead with expansion of its low cost brand in France and has a back-up plan if a deadlock with pilots continues, its chairman and chief executive officer Alexandre de Juniac said in an interview published on Sunday, reports Reuters.

Pilots ended the airline's longest strike since 1998 in late September despite continued deadlock with managers over the development of the firm's low-cost operations.

Asked why the pilots suspended the strike when the final decision was not taken, Juniac said in an interview to weekly Le Journal du Dimanche: "Sense of responsibility prevailed. Our proposals remain on the table".

Air France-KLM has put the total cost of last month's two-week pilots strike at up to 500 million euros (392 million pounds), enough to wipe more than a fifth off its estimated full-year core profit.

If pilots do not agree to sign the proposals, Air France may choose to set up a subsidiary of Transavia, Transavia Development, in France in a bid to develop the low-cost business with new planes that arrive in the coming months.

"But it would be more simple and logic if pilots agree," de Juniac said.

Read more of this report from Reuters.