Striking pilots reject Air France low-cost delay

AP News
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Posted: Sep 22, 2014 9:13 AM

PARIS (AP) — Air France pilots are rejecting the company's offer to delay the expansion of its low-cost carrier, Transavia, after a seven-day 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.

The main pilots' union, SNPL, says Monday's offer to delay the expansion until December is a smokescreen, accusing the airline of trying to outsource jobs to countries with lower taxes and cheaper labor.