PARIS Dec 12 Air France has abandoned
plans to study forming a subsidiary unit for its maintenance
arm, its chief executive told trade unions in a letter.
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, 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)