Air France-KLM Said to Consider Starting New Low-Cost Operation

Air France-KLM Group, Europe’s biggest airline, may start a new low-cost service as the carrier seeks ways to stem losses, according to a person familiar with the matter.

Two possibilities are being considered, said the person, who asked not to be identified because the discussions are private. One would see the development of Transavia, a Dutch subsidiary which has low-cost and charter services. The other would involve the creation of a new service under a new brand alongside Air France for flights shorter than two hours, the person said.