Air France strike illustrates European airline troubles
<p>Travelers walk past Air France desk at Paris Charles de Gaulle airport, in Roissy, near Paris, Monday. Pilots for Air France have kicked off a weeklong strike, angry that the airline is shifting jobs and operations to a low-cost carrier to better keep up with competition. </p>
PARIS (AP) - Air France canceled at least half its flights around the world on Monday as pilots began a weeklong strike, highlighting the trouble Europe's flagship airlines face in keeping up with low-cost competitors.
Air France-KLM, which is the national carrier for France and the Netherlands, said it can ensure just 48 percent of flights Monday, 40 percent on Tuesday and perhaps less later in the week as unions protest against its savings program.
Like Lufthansa, Alitalia, SAS and other national airlines in Europe, Air France-KLM is focusing on cost cuts to remain competitive. That, however, can be difficult in some European countries where laws protecting workers' rights are strong.
Last week, Air France announced a plan to save 1 billion euros ($1.3 billion) over the next several years, in part by transferring much of its European operations to low-cost subsidiary Transavia.
Air France pilots' unions are calling foul, and called a weeklong strike starting Monday. They accuse the airline of trying to shift their jobs to countries with lower taxes and cheaper labor - for example by basing planes for France-Portugal flights in Portugal, instead of France.
"This is about a project of outsourcing," said Jean-Louis Barber, the president of the main Air France pilots' union, SNPL. "That's why pilots are angry."
Investors seem to think it's the right thing to do. Shares in Air France rose on news of the savings plan, after three years of difficult restructuring and cost cuts.
Air France-KLM's plans for Transavia envision a fleet of 100 jets by 2017 carrying more than 20 million passengers a year, more than double the current load.
On Monday, the Paris airport authority said only half of Air France flights were operating out of Charles de Gaulle and Orly airports. At Charles de Gaulle, crowds gathered at the Air France counter to try to change their tickets, and canceled flights were removed from departure and arrival screens.
"I thought that something was up when I saw that my flight wasn't on the departures board," said Austrian tourist Alice White. "I hope I will be back to Vienna in time to be at work."
Catherine Jude, operations director at Air France, apologized to customers, saying, "This strike is damaging to all our passengers."