Air France set to resume flights

Passengers queue at Roissy airport, Paris

PARIS, France -- The bulk of Air France flights should resume on Tuesday following a four-day strike by pilots over pay and conditions -- despite failure to reach a settlement.

About 90 percent of flights should be running with a full service returning on Wednesday, the national carrier said on Monday.

But as pilots go back to work, ground staff are set to take a day of action in protest at government plans to reduce the state's holding in Air France. The airline said action by the two trade unions should not affect flights.

The four-day strike by six pilots' unions, which began on Friday, caused widespread disruption with Pairs airports being affected the worst with up to 75 percent of flights being hit.

The pilots have been calling for a 10 percent pay rise in addition to the 7 percent won within the last year, the airline said. Management has offered 3 percent.

RESOURCES • Air France Web site

Air France was forced to cancel about half its European flights and a third of its international services during the strike.

About 54 percent of flights from Charles de Gaulle airport and 75 percent at Orly were cancelled on Monday, officially the last day of the strike, LCI television was quoted by The Associated Press as saying.

There was little crowding or confusion at the airports as travellers, well warned in advance, stayed away or switched to France's high-speed train network.

Management dismissed the pilots' demands, saying they were "unrealistic."

Air France Chairman Jean-Cyril Spinetta said a hefty wage hike would have long-term negative effects on the airline.

Spinetta said other European airlines such as Lufthansa and SAS had granted pay increases of 15 to 30 percent in recent years, heavily burdening their finances.

Pilots say Air France has posted comparatively robust financial results, outperforming many of its peers by shifting capacity towards routes less affected by the September 11 attacks and snapping up the clients of failed airlines Sabena and Swissair.

In its 2001/2002 fiscal year, which ended in March, Air France was the only major European airline to report a profit, posting net earnings of 153 million euros ($152 million).

On Wednesday, the airline reported better-than-expected net profit of 159 million euros for the first quarter to June.

The French government, which currently owns 54.4 percent of the airline, announced in late July that it would reduce its holding below 20 percent in a public offering early next year.

Analysts say the strikes, if they persist, could threaten the success of that sale by sapping interest in the airline among professional and retail investors.

Shares in Air France slipped 0.6 percent to 11.55 euros in early Paris trading on Monday. The company's stocks slipped to a year low of 10.90 euros at the beginning of the strike.

In a separate move Air France has said it plans to cancel two flights on Wednesday, one to Washington and one to New York, because of a slump in ticket sales on the anniversary of the terror attacks in the U.S..