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Air France Sticks To Low-Cost Plan Despite Strike

Air France pilots attend a demonstration in Paris, Tuesday, Sept. 23, 2014. France’s prime minister speaking out against Air France pilots who are striking for an eighth day over the proposed expansion of its low-cost carrier, Transavia. Air France-KLM airline says the strike is costing up to euro20 million ($25 million) a day. The company is cutting costs to try to stay competitive with budget airlines. About half the airline’s flights have been cancelled. The sticker reads: Pilots on strike. All together for our future. (AP Photo/Christophe Ena)

PARIS (AP) — Air France-KLM says it isn’t ready to abandon a plan to transfer activities to a low-cost carrier, contradicting a government minister’s claim.

Air France pilots attend a demonstration in Paris, Tuesday, Sept. 23, 2014. France’s prime minister speaking out against Air France pilots who are striking for an eighth day over the proposed expansion of its low-cost carrier, Transavia. Air France-KLM airline says the strike is costing up to euro20 million ($25 million) a day. The company is cutting costs to try to stay competitive with budget airlines. About half the airline’s flights have been cancelled. The sticker reads: Pilots on strike. All together for our future. (AP Photo/Christophe Ena)

France’s junior minister for transport, Alain Vidalies, said on RMC radio Wednesday that Air France was withdrawing the plan in the face a protracted strike by pilots.

But Air France spokesman Cedric Leurquin told The Associated Press that there has been “no change in the negotiations.” He said the airline is sticking to its offer Monday to suspend the plan until the end of the year but not withdrawing it.

Unions dismissed that offer as a stalling tactic. They say the plan to shift much of Air France’s European operations to low-cost carrier Transavia will cost too many jobs.

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