French flag carrier Air France today offered to freeze the expansion of its low-cost operation in a bid to end the longest strike at the airline since 1998.
As the strike entered its second week, management said it would halt the development of its leisure subsidiary Transavia until December, unions said, raising hopes of an end to the crisis.
Air France chief executive Alexandre de Juniac said it was "the last offer" and was expected to sketch out a "global plan to exit the crisis" at around 0530 IST.
He offered "to suspend the plan to create Transavia subsidiaries in Europe until the end of the year" in order to have "a deeper dialogue" with pilots but insisted the overall project could not be called into question.
Union sources said there was a "softening" of tensions but complained that "the company still has a strong ambition to develop Transavia."
Air France pilots are on strike in protest at the airline's plans to develop Transavia France, which serves holiday destinations, primarily in the Mediterranean.
They fear the airline will attempt to replace expensive Air France pilots, who can earn up to 250,000 euros in annual salary, with Transavia pilots, who are paid considerably less.
As on previous days, the strike forced the airline to scrap more than half its flights today and the company has estimated it is losing between USD 19 million per day.
The airline operated around 40 per cent of its flights today, with nearly seven in 10 pilots walking off the job.
Air France has made concessions before - notably an offer to limit the Transavia fleet to 30 planes compared to 37 originally planned - but to no avail so far.
"This strike is becoming interminable," said Jean-Claude Delarue, president of a travellers' federation.
"You have to ask yourself whether Air France will end up losing market share because travellers will end up going elsewhere," said Delarue.
The government has called several times for an end to the strike, with Prime Minister Manuel Valls warning that the image of the eurozone's second largest economy was at risk.
Transport Minister Alain Vidalies warned over the weekend that "the fate of the company could be at stake."
"The low cost (arena) is not a choice, it's an obligatory move, that's reality. I think pilots are fully aware of this," he told French radio over the weekend.
The main pilots' union, SNPL, has called for the strike to be continued until Friday and threatened a further extension if its demands are not met.
Over the weekend, management sent an email to its pilots to try and put an end to what it said were attempts of "intimidation" against pilots that were continuing to work.
