Air France is piloting a draft agreement on low-cost domestic flights

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FILE PHOTO: An Air France Airbus A380 aircraft is seen arriving at Charles-de-Gaulle Airport after its retirement flight, to Roissy, near Paris, June 26, 2020. REUTERS / Christian Hartmann / File Photo

PARIS (Reuters) – Air France-KLM (AIR.PA) reached an agreement in principle with French pilots to transfer certain national services to the low-cost subsidiary Transavia, while the group of airlines is intensifying its restructuring following the coronavirus crisis, said the main pilots’ union .

A draft agreement is “on the table” but has not yet been signed subject to approval by members, said a spokeswoman for the main union of pilots of Air France’s SNPL, confirming a report by French daily newspaper La Tribune. Air France declined to comment.

The Franco-Dutch group aims to cut some 7,580 jobs by the end of next year as airlines struggle to cope with the COVID-19 pandemic and the resulting drop in world travel.

CEO Ben Smith is stepping up cost reduction measures, including the transfer of French domestic services from Air France and its HOP! at Transavia. The move requires changes to union agreements which currently prevent the no-frills division from competing on national roads.

Report by Laurence Frost; Editing by Edmund Blair

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