Air France resists pilot pay demands

Air France-KLM said on Friday it would continue to develop a low-cost airline in France, dismissing union demands for the unit's pilots to have full Air France pay and conditions as "completely contrary" to the low-cost model.

As a pilots strike costing up to 20 million euros a day over plans to expand the airline's Transavia low-cost model entered its 12th day, the company said in a statement that the management had the full support of the board.

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Talks between the unions and management reached deadlock in the early hours of Thursday morning over the future of Transavia France, even though the strike had already forced Chief Executive Alexandre de Juniac to abandon a plan to develop Transavia hubs in other European countries.

Air France also called on the pilots to return to work.