Air France has confirmed the “immediate withdrawal” of plans to develop low-cost arm Transavia across Europe in a bid to end a damaging 11-day-long pilots’ strike.
However, the airline plans to further develop Transavia in France.
The carrier, which has been losing €20 million a day due to the industrial action, said the proposals were aimed at promoting the “rapid resolution of the conflict”.
Air France said: “This balanced proposal meets the unions’ requirements by providing a renewed guarantee that there will be no relocation.
“It preserves the Transavia development project, a ‘made in France’ solution to face the competition from foreign low-cost carriers and conquer this rapidly-expanding market.
“It meets the needs of employees who want their company to get back on track.
“It enables us to find an immediate outcome to this destructive conflict.”
Alexandre de Juniac, chairman and chief executive of Air France-KLM, and Frédéric Gagey, chairman and chief executive of Air France, said: “Our Transavia project is a 100% pro-France project.
“It is about developing Transavia to encourage growth in France and quickly create more than 1,000 jobs in France, including 250 pilot jobs.
“With the withdrawal of the Transavia Europe project, there is now no reason to strike because there are no longer any concerns about relocation.
“We therefore call on the striking pilots to return to work immediately.”