Air France-KLM has begun negotiations with both Airbus and Boeing on a large order of single-aisle aircraft to expand the operations of its Dutch low-cost subsidiary Transavia.

Transavia, which has French and Dutch divisions, currently operates only Boeing jets, mostly the 737-800, to short- and mid-haul European destinations.

The two candidates for a deal are the Boeing 737 MAX and the Airbus A320neo.

Air France-KLM Chief Executive Officer Ben Smith has made the expansion of low-cost operations a key element of plans to rebound from the coronavirus pandemic.