Rivals likely to benefit as more strikes loom at Lufthansa

For an airline struggling to maintain its market share against stiff opposition, further strikes at Lufthansa could see it struggle further after a period of 18 months where numerous strikes have already cost it hundreds of millions of euros. Currently Vereinigung Cockpit (VC), which represents approximately 5,400 pilots at Lufthansa, has agreed to certain concessions over the age at which pilots can take early retirement, but the major stumbling block would seem to be the new budget carrier, Eurowings, which VC wants based in Germany so that pilots could join German collective agreements. However Lufthansa want to base the airline in Austria. This move is seen by VC as an attempt to abandon collective agreements and opt for outsourcing jobs instead.
Lufthansa CEO, Carsten Spohr, told journalists outside a conference in Vienna, “If strikes are the price to pay to make Lufthansa fit for the future, then we must pay it.” However further strikes will not only affect Lufthansa, but Lufthansa Cargo and its budget carrier Germanwings as well.
The early retirement taken by so many pilots when combined with recent years’ financial conditions has seen the airline’s pension pot in deficit. The airline has also made it clear it needs to cut costs to stop the present reduction in market share to not only low-cost carriers in Europe, but also Turkish Airlines and Emirates on long-haul routes. To make matters more difficult for Lufthansa, Ryanair is among a number of low-cost airlines targeting the German market.
While VC believe Lufthansa have turned down their latest compromise offer, Lufthansa has denied this, making it clear it has proposed working groups with a view to discussing a number of unresolved points. A spokesman for the airline hoped talks could resume, stating that only its rivals would benefit from more strikes.