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Lufthansa bracing for further strikes

Lufthansa is bracing itself for further strikes after the German pilots’ union said more industrial action was imminent in a dispute over pay and retirement ages.

The Frankfurt-based airline and its low-cost carrier Germanwings have already been hit by walk-outs this year, with strikes in April one of the contributing factors behind a profit warning in June.

The Financial Times reported the Vereinigung Cockpit union was expected to give two days’ notice of any further action.

But analysts claimed that previous disruption to schedules would mean that the union would lack public support.

Lufthansa shares fell on Monday over the threat of strikes which could cost it tens of millions of euros.

“We very much regret the VC’s decision to declare the talks a failure,” Lufthansa said. “In spite of the strike threat, we remain ready to talk – especially in order to avoid harm to our customers.”

Lufthansa is proposing an average retirement age for pilots of 61, while the union is insistent that an option for early retirement at 55 should be retained.

It is also unhappy about Lufthansa’s plans to tie pay rises to financial performance, which the airline says is necessary given increased competition and rising costs. 

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