Air France Strike As Europe Faces Low-cost Shakeup

PARIS (AP) — At least half of Air France flights around the world were canceled Monday as pilots kicked off a weeklong strike, angry that the company is shifting jobs and operations to a low-cost carrier to better keep up with rivals. The company's challenges echo those faced by flagship airlines across Europe as they face tough competition from budget airlines for short-haul flights and cash-rich Gulf state carriers on long-haul routes. At Charles de Gaulle on Monday morning, crowds gathered at the Air France counter to try to change their tickets, and canceled flights were removed from departure and arrival screens. Scandinavia's SAS, under pressure from low-cost airlines including Norwegian and Ryanair, was close to bankruptcy in 2012 when unions agreed to a $440 million a year savings package that included salary cuts and changes to work schedules and pension plans for employees.

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