Air France 'must stand firm' on pilot strike

Up to 200 pilots have entered their second week of strikes against Air France in a dispute over the company's plan to expand its low cost business.

The strike, held outside the National Assembly in Paris, is scheduled to last until Friday but could be extended.

An offer to delay the introducing the international arm to the end of the year was dismissed as a “smokescreen” by pilots, whose action has come under fire from government. Prime Minister Manuel Valls has said the strike is not understood by the French.

Pilots are concerned that setting up Transavia Europe may lead to a transfer of jobs from France, a claim that Air France-KLM Group CEO Alexandre de Juniac has disputed.

Shakeel Adam, managing partner at Aviado Partners, said: "I think, unlike where we have seen other strikes in Europe, this is a market that is very price sensitive and customers are saying: 'Air France needs to survive.

"It looks as though the government is putting pressure on the company to back down. It's a difficult situation".

The strike is reportedly causing an operating loss of as much as €20m (approximately £15.6m) a day. The government retains a stake of 16pc in the airline group, making it the biggest investor.

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