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Share Price: 460.00
Bid: 459.90
Ask: 460.20
Change: -0.40 (-0.09%)
Spread: 0.30 (0.065%)
Open: 461.40
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Low: 457.30
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UPDATE 2-Air France relieved as pilots call off strike

Fri, 02nd May 2014 12:55

(Add transport minister's comments)

By Astrid Wendlandt

PARIS, May 2 (Reuters) - France's main air pilots unioncalled off plans for a month-long strike on Friday, hours beforeit was due to start, saying they secured assurances thatairlines would not be allowed draft in pilots from othercountries to short-circuit industrial action.

The SNPL union announced its decision on the eve of what AirFrance-KLM had denounced as a "contemptuous" labour protest planthat would have involved stoppages of several hours every dayfrom May 3-30.

Pilots at Air France said they went on the offensive afterEasyJet, another airline, had recruited replacementpilots from other countries, availing itself of a law requiring48-hour notice of strike action to do so.

Yves Deshayes, head of the SNPL union, said TransportMinister Frederic Cuvillier had reassured pilots that the law oncompulsory advance notice of stoppages was designed to helpairlines notify passengers, but not to allow them bring pilotsin from elsewhere as replacements.

"The response to our case is satisfactory," Deshayes told anews conference at Charles de Gaulle airport north of Paris.

Cuvillier said he would summon airlines rapidly to secureassurances that they will respect the spirit of the law onstrike notice and not use it to undermine the right to strike.

"I've asked companies circumventing this right to strike ...to adopt a code of good conduct," Cuvillier told reporters,stressing that airlines needed advance notice to prepare forindustrial action but that the right to strike was fundamental.

Air France's share price rose after news that the airline nolonger faced the prospect of a disruptive and potentially costlystrike. The share price gained as much as 2.2 percent in the 30minutes after the news emerged and was trading up 3.1 percent inmid-afternoon.

"This is excellent news for both Air France customers andstaff," Air France CEO Frederic Gagey said in a statement on thedecision to call off the industrial action. (Additional reporting by Blaise Robinson; Writing by BrianLove; editing by Mark John)

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