PARIS

 Air France pilots have decided to continue their strike despite the airline’s decision to postpone plans to expand its low-cost Transavia subsidiary.

The main pilots' union SNPL rejected the airline’s proposal on Monday afternoon.

"It is nothing but a smoke screen that offers no more guarantees than previous offers and does not solve any problem," a statement from the union said. Le Parisien said the SNPL could extend its strike to October 4.

Earlier, the airline said it would suspend the low-cost plan until December.

The action, which began last Monday, is in response to the airline’s plans to hire hundreds of new pilots on lower pay to fly for Transavia, a budget subsidiary. It has affected tens of thousands of passengers, France 24 TV station reported.

Last week six out of ten of flights were grounded by industrial action with a similar number likely to be unable to operate until at least Friday. The company announced that 41 percent of flights would fly on Monday.

Union chiefs have declared the strike will continue to the end of the working week, following last week’s vote by pilots to hold out.

Jean-Louis Barber, head of the SNPL pilots’ union, told Le Monde newspaper the strike could be for an “unlimited duration” if no resolution was reached by Friday.

In a statement the union said the talks had reached a “complete impasse,” and called for Prime Minister Manuel Valls to intervene.

Air France Chief Executive Frederic Gagey has said the cancellations are costing the company up to 15 million euros ($19 million) daily.

On Sunday Transport Minister Alain Vidalies told France Info radio the future of the airline “could be at stake.”

According to Daily Le Parisien, the SNPL could extend their strike till 4th of October.

In 1998, 3,200 Air France pilots went on a nine-day strike over cuts in pay. Three in four flights were suspended.

www.aa.com.tr/en