Air France-KLM to invest €1bn in expanding Transavia fleet

Airline Air France-KLM plans to pump €1bn into its low-cost subsidiary Transavia, doubling the size of its fleet to 100 aircraft, according to a French media report.

Chief executive Alexandre de Juniac told Les Echos the investment is a major project which will turn Transavia into one of the big players in the low-cost air travel market.

The airline is currently negotiating with Air France pilots about the plans which will involve a downgrade in their job conditions. ‘You cannot work for Transavia with the same pay and conditions as Air France without finishing Transavia off,’ De Juniac is quoted is saying.

Cost cutting

Last month Transavia chief executive Matthijs ten Brink told staff the airline is being transformed into a low-cost carrier, requiring a 15% cut in costs. The cost cuts are needed to ‘keep ticket prices competitive’, Ten Brink said in an email to staff.

Transavia operates from all five Dutch airports: Schiphol, Rotterdam, Eindhoven, Maastricht and Groningen.

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