Transportation

Air France to suspend Transavia Europe plans

Sia Kambou | AFP | Getty Images

Air France denied comments by French Transport Minister Alain Vidalies that it had abandoned plans for its Transavia Europe unit, saying instead that the project was suspended pending further talks.

"There is no change in the negotiations that leads us to affirm that the Transavia Europe project is withdrawn," an airline spokesman said on Wednesday. "Our proposal remains to suspend this project and open a wide consultation, a wide dialogue with our social partners by the end of the year."

Read MoreAirFrance strikes hint at bad news for Malaysia Air

Vidalies earlier told RMC radio that the project had been withdrawn by management, and not simply suspended.

Follow us on Twitter: @CNBCWorld