Air France plans to fight budget rivals on costs, not fares

Air France pilots approved the carrier’s plan to carve out a new, lower-cost business to counter increasing pressure from rivals, marking a rare agreement with workers after years of contentious labour relations at the carrier. Flight-deck employees, represented by the SNPL union, voted 58.1% in favour of the proposal to create the unit, provisionally dubbed Boost. Further talks are needed to refine the plan, it said. The approval bolsters Air France-KLM CE Jean-Marc Janaillac’s strategy to generate consistent earnings in the face of industrywide competition in Europe from both discount regional airlines and high-end Persian Gulf carriers. He has taken a more conciliatory approach toward labour than his predecessor, Alexandre de Juniac, who once proposed forming a new low-cost airline without asking pilots first. <br/>