Air France KLM Plans to Create Low Cost Carrier

PARIS (Reuters) - French-Dutch carrier Air France KLM <AIRF.PA> is looking to create a low cost carrier to benefit from the growing leisure market, the company said on Friday.

The group is examining the development of its subsidiary transavia.com, which already offers a mix of scheduled and charter flights, for new services from France.

The new company would be 60 percent owned by Air France and 40 percent owned by transavia.com. It would be launched in the spring of 2007.

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