Biz/Tech

Air France Postpones Low-Cost Plans to Appease Strike

Sep 22, 2014 09:10 AM EDT | By Eunice Tagalog

Air France announced on Monday that they aim to delay their plans to expand low-cost operations abroad.

The decision came after the longest strike at the airline since 1988, where 80 percent of the pilots of the SNPL union decided to execute a weeks-long strike against the French flag carrier.

The protest began after Air France announced plans of Air France to outperform its competition and boost sales by putting up foreign airport bases for its low-cost Transavia brand.

Pilots are worried that Air France may altogether abandon Transavia's development in France and shift its attention in building Transavia bases out of the country.

They fear that the Airline may try to replace Air France pilots with Transavia's pilots who are "less expensive."

The Air France management was forced to suspend its development plans for Transavia until Dec. following the second week of the pilot's strike.

Air France chief executive Alexandre de Juniac offered "to suspend the plan to create Transavia subsidiaries in Europe until the end of the year" so that the management could have "a deeper dialogue" with pilots.

Air France insisted on its plan to develop Transavia abroad, raising pilots' concerns.

Because of the protests, only 38 percent of Air France's flights were postponed on Sunday, and half of all flights were discontinued on Monday, amounting to losses of 10-15 million euros ($19 million) per day.

The strike has called the attention of Prime Minister Manuel Valls and Transport Minister Alain Vidalies, both worried on the effect of the strike in the company and the country.

Meanwhile, Air France management sent emails to the pilots to suppress the escalating issue.

"Air France management will not tolerate any misdemeanour and will initiate steps necessary to punish those who engage in such acts," the email stated.

The Airline also apologized to its customers and feel their "frustration" and "unhappiness."

Air France offered customers who have booked their ticket before Sept. 26 to suspend their trip or change it for free.

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