Air France Confident Transavia Can Start Service in April

PARIS--Franco-Dutch airline Air France-KLM SA's (AF.FR) management said Monday it was confident it could reach an agreement with pilot unions to open bases outside France for its lower-cost carrier Transavia in April, as scheduled.

In a bid to end a week-long strike by Air France pilots, the company said it has offered labor unions to suspend the launch of the European bases for three months. In addition, Air France-KLM Chief Executive Alexandre de Juniac said he has proposed fast-tracking the expansion of Transavia France, increasing its fleet to 37 planes from 14.

"Few people could understand the reasons behind the strike," Mr. de Juniac told reporters in Paris. "Now, nobody can understand them."

Two pilot unions have rejected Mr. de Juniac's proposals, saying the strike would continue.

Mr. de Juniac said the industrial action, which began Sept. 15, was causing a daily operating loss of close to EUR20 million ($25.7 million).

Pilots walked out a week ago to protest Air France's plans to expand Transavia, while cutting costs at the parent airline. Unions say they want the company to grant pilots at Transavia Europe the same working conditions and generous benefits as those at Air France.

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