Published January 08, 2015
Air France is delaying the expansion of its low-cost carrier, Transavia, after a seven-day pilots' strike that the airline says is costing it up to 20 million euros ($25 million) a day.
Pilots unions went on strike last week after Air France-KLM announced plans to save 1 billion euros ($1.3 billion) over several years in part by transferring European operations to Transavia. The company, which is cutting costs to try to stay competitive with budget airlines, says talks are deadlocked. About half the airlines' flights have been cancelled since the strike began.
Pilots' unions accuse the company of trying to outsource jobs to countries with lower taxes and cheaper labor — for example basing crews for France-Portugal flights in Portugal.