Air France-KLM CEO Alexandre de Juniac is threatening to stop the expansion of the airline’s budget carrier Transavia in France, if the group can’t reach an agreement with a French pilots union ahead of a planned strike next week.
De Juniac told the Financial Timesthat he will look to expand Transavia, Air France-KLM’s low-cost carrier, only across Europe and not in France if pilots do not back down.
Pilots are currently paid less at Transavia than at Air France’s mainline business.
“If we cannot find an agreement on Transavia France, we will stay as we are with 14 planes, we will stop all new projects with Transavia France, and we will develop Transavia Europe,” de Juniac told the FT.
“We say no, there is Transavia and Air France, but they are two separate worlds,” he added.
Earlier this week, Air France-KLM unveiled its latest turnaround plan, ‘Perform 2020. As part of this plan the airline wants to invest €1 billion in growing Transavia, this would help create 250 new pilot jobs and grow its fleet to 100 aircraft.
Europe’s second largest traditional carrier by revenue said by 2017 Transavia “will rank among the leading low cost carriers in Europe”, and there are plans to move the business to a more “pan-European scale”.
Seven-day strike action
Several pilots unions have agreed to walkout for seven days from September 15 in a dispute over Air France-KLM’s plans to transfer most of its short and medium-haul services to Transavia, which unions are concerned will affect employees’ working conditions.
The airline is enabling its customers to postpone their trip or exchange their tickets free of charge as a result of the planned action.
“Air France is continuing its constant dialogue with the staff unions and discussions will continue over the next few days in order to reach an agreement,” the airline said in a statement.