This agreement allows Transavia to operate lines within France and to adapt the pilot guarantees for the activities of the European network to the level of activity expected on the national network in the coming years. An agreement was signed in September 2019 to lift restrictions on the growth of Transavia`s fleet. Perhaps the company`s management has finally decided that a separate pilot staff, with different conditions, could help reduce costs. Oliver Sleath, European airline analyst at Barclays, suggests that operators want to undermine the power and influence of unions by creating internal competition: «Lower cost units within a former [airline] can help boost the economies of the main airline. If staff are unwilling to adapt, investment and growth opportunities will be directed to other agencies. But it is still a power struggle between management and unions. It is already valid as the SNPL represents 75.9% of the votes cast for pilots` unions. Air France-KLM argues that Transavia France «can only develop under economic conditions compatible with the low cost model.» Any single collective agreement for pilots would be «totally contrary to the principle of this low cost model,» particularly if such a contract were concluded «under Air France conditions,» according to the group. The Netherlands has definitively approved a 3.4 billion euro ($4 billion) bailout package for the Dutch arm of Air France-KLM, after the pilots of the troubled airline agreed on salary caps that could take five years. Air France has already attempted to take similar measures, but this is the first time that the airline and the unions have agreed to formal changes allowing transavia to operate domestic services.

The coronavirus pandemic, which has forced Air France to cut more than 7,500 jobs, is driving the agreement as Air France tries to restructure and cut costs whenever possible. Since last year, many pilots had shown their verbal aversion to the contract offered to them. However, the new agreement signed yesterday means that the problem seems to have been resolved for now. www.ainonline.com/aviation-news/air-transport/2020-08-12/air-france-wins-pilot-deal-transavia-domestic-flights These agreements provide the flexibility to support Air France`s new ambitions, while setting measures to improve aviation safety, business strategy, business performance, and pilots` daily lives and compensation.