PARIS Jan 28 Franco-Dutch group Air France-KLM
has formed a new French regional airline unit called
Hop! to respond to competition from low-cost rivals.
Hop! will operate 530 daily flights to 136 destinations in
Europe from March 31 with one-way fares from 55 euros, the
company said on Monday.
The launch of the new airline - which has been created
through the merger of regional units Brit Air, Regional Air and
Airlinair - is part of a reshuffle of the group's loss-making
short and medium-haul operations.
Under a three-year plan dubbed "Transform 2015," Air France-
KLM is seeking to cut costs to pay back debt. It will cut 5,000
jobs to turn around its short and medium-haul business, which
lost 700 million euros in 2011.
Earlier this month, the carrier unveiled a lower-cost
tariff, dubbed "MiNi," targeting people who travel light,
another move aimed at reviving its loss-making short and
($1 = 0.7421 euro)
(Reporting by Elena Berton; Editing by Dan Lalor)