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Air France drops plans for forming subsidiary for maintenance arm

Published 12/12/2016, 08:41
Updated 12/12/2016, 08:50
© Reuters. Airline's new Boeing Inc. 787-9 Dreamliner passenger aircraft stands on the tarmac at Charles de Gaulle Airport in Roissy

PARIS (Reuters) - Air France (PA:AIRF) has abandoned plans to study forming a subsidiary unit for its maintenance arm, its chief executive told trade unions in a letter.

Maintenance is one of the most profitable business units for the Franco-Dutch airline group, whose French passenger operations have been engulfed by strikes and restructuring.

© Reuters. Airline's new Boeing Inc. 787-9 Dreamliner passenger aircraft stands on the tarmac at Charles de Gaulle Airport in Roissy

Air France-KLM's maintenance division, second in the market behind Lufthansa (DE:LHAG), accounts for only 15 percent of group sales but 26 percent of its operating profit.

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