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Air France drops plans for forming subsidiary for maintenance arm
December 12, 2016 / 8:42 AM / a year ago

Air France drops plans for forming subsidiary for maintenance arm

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

Airline's new Boeing Inc. 787-9 Dreamliner passenger aircraft stands on the tarmac at Charles de Gaulle Airport in Roissy, France, December 2, 2016. REUTERS/Benoit

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.

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

Reporting by Cyril Altmeyer; Writing by Sudip Kar-Gupta; Editing by Leigh Thomas

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