Air France Plans to Fight Budget Rivals on Costs, Not Fares
Flight deck employees represented by the SNPL union and Air France pilots have reached an agreement with the airline to define a lower-cost business in order to reverse the carrier's unprofitable state. Current Air France-KLM CEO Jean-Marc Janaillac is working closer with workers than his predecessor Alexandre de Juniac, who once suggested creating the lower cost airline without consulting pilots beforehand. By contrast, Janaillac has mitigated a pay-reduction plan to get employees on board with his ideas. The lower-cost unit named "Boost" is aimed to decrease costs by 20% on long-haul flights.
See "Air France Plans to Fight Budget Rivals on Costs, Not Fares", Andrea Rothman, Bloomberg, February 21, 2017