(March 11): Deutsche Lufthansa AG is facing a two-day pilot walkout starting on Thursday, threatening to ground hundreds of flights at a time when the airline already grapples with fuel-price volatility and geopolitical disruption linked to the war in Iran.
The proposed walkout would start March 12 at 00.01am and last until March 13 at 11.59pm, and would affect flights operated by the flagship airline Lufthansa and its cargo carrier departing from German airports, according to a statement by Vereinigung Cockpit union. The pilot strike at regional carrier Lufthansa CityLine would only take place on Thursday.
Flights to the Middle East operated by Lufthansa mainline and Lufthansa CityLine are exempt from strike, it said.
“A strike is always a last resort for us and not an end in itself,” said vice president Andreas Pinheiro. “Employers still have the opportunity to avert industrial action by making a negotiable offer.”
Lufthansa board member Michael Niggemann called the strike escalation “completely incomprehensible”, saying the flagship airline’s low margins leave no scope for further pension increases. The company is preparing a special flight schedule for the strike and has launched an internal appeal to ensure a minimum number of flights operate, he added.
Lufthansa shares fell as much as 3.1% in Wednesday trading in Frankfurt. They have gained 10% over the last 12 months through Tuesday’s close.
The labour action follows a one-day walkout in February that led to almost 800 cancelled flights and affected about 100,000 passengers. That cost the company about €15 million, chief executive officer Carsten Spohr said last week.
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Negotiations over pilots’ pensions collapsed last year, triggering a strike ballot in September. The union is demanding higher company contributions, while Lufthansa says there is little room for increases. Pilots previously received a guaranteed company pension, which was replaced in 2017 by a capital market-based system that VC says falls “significantly short” of the former plan.
Niggemann said that Lufthansa already offers a “very good retirement security both in an internal comparison within the Lufthansa Group and with other airlines, industries, and companies.”
For CityLine, the dispute centres on a new collective wage agreement for cockpit staff. While management made an offer in late February, the union said it failed to meet its demands and rejected the call for an “absolute peace obligation”.
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The renewed labour tensions risk complicating Lufthansa’s efforts to lift profitability. In addition to cutting 4,000 administrative jobs, Lufthansa is shifting more short-haul flying to lower-cost units such as City Airlines and Discover, where crew costs are up to 40% lower than at the mainline carrier.
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