PARIS (Reuters) - Air France (AIRF.PA) is withdrawing plans to develop its Transavia Europe budget unit that are at the heart of a labour dispute with pilots, French Transport Minister Alain Vidalies told RMC radio on Wednesday.
"The Transavia Europe project has been abandoned," he said. "It isn't suspended for three months, it's been withdrawn by management."
Air France was not immediately reachable for comment.
Reporting by James Regan; Editing by John Irish