Air France’s management and pilots unions reached a tentative agreement Thursday over the fate of budget unit Transavia, after several months of tense negotiations, reports The Wall Street Journal.
Under the proposed agreement, Air France, which was hit last month by a costly two-week strike, said it would expand its Transavia fleet beyond its current 14-aircraft cap. It will also allow Air France pilots flying for Transavia to retain some special benefits.
To further rein in costs and recapture market share from budget airlines, Air France planned to transfer most of its short- and medium-haul services to its own low-cost units, Hop! and Transavia Airlines.
But pilots, who under a 2007 bargaining agreement have a say in the number of aircraft Transavia can operate from France, rejected the proposal. They said they wouldn’t agree to lift the cap of 14 planes at Transavia unless all cockpit crews, salaried by the flag carrier or the low-cost unit, receive Air France pay and welfare benefits.
Read more of this report from The Wall Street Journal.