Air France Wins Pilots' Approval For Lower-cost Airline

Air France wins pilots' approval for lower-cost airline

PARIS, , (APP - UrduPoint / Pakistan Point News - 17th Jul, 2017 ) - A lengthy dispute between Air France management and pilots ended Monday after the pilots backed the establishment of a lower-cost subsidiary to try to compete with budget airlines and Gulf carriers.

Air France-KLM CEO Jean-Marc Janaillac praised the pilots' "spirit of responsibility" after they agreed to the creation of a cheaper medium- and long-haul service on condition they would receive the same pay and conditions.

The hiring of stewards, hostesses and part of the ground personnel for the new Boost service will, by contrast, be outsourced.

Janaillac said the agreement was a "balanced compromise that serves the interest of the company and all its employees." The company will begin offering the lower-cost medium-range flights in the autumn and follow up with a new long-range service in mid-2018.

The pilots were initially hostile to the plan, fearing they would be forced to accept lower wages. In September 2014, they striked for two weeks over the expansion of Air France's low-cost European subsidiary Transavia, grounding thousands of flights.