Lufthansa CEO Carsten Spohr appeared unfazed by the industrial action, which coincides with the airline's centenary celebrations. "I would rather have a few days of reduced service within the Lufthansa Group due to strikes than eventually face a permanently and significantly diminished core brand," he told the "Frankfurter Allgemeine Zeitung" according to a preliminary report. Previously, Chief Human Resources Officer Michael Niggemann had threatened to further downsize the barely profitable premium brand in the face of strikes and high personnel costs: "Every strike shrinks the affected airlines."
Munich, Germany's second-largest airport, recorded around 720 cancellations across both days, also largely attributed to Lufthansa. While Lufthansa does not disclose absolute figures for flight cancellations, it provided proportional data. At Lufthansa Airlines, which includes the non-striking carriers Discover and City Airlines, two-thirds of short- and medium-haul flights were grounded, while every second long-haul flight was cancelled.
While Lufthansa pilots are walking out for the third time in a dispute over company pension schemes, pilots at Eurowings were called to a one-day strike over the same collective bargaining issue for the first time. "Despite the strike call, we will be able to operate around 60 percent of scheduled flights today - approximately 300 flights," Eurowings announced. This resulted in 210 cancelled connections.
STALEMATE IN NEGOTIATIONS
After more than six months of dispute over company pensions, there has been no rapprochement between the bargaining parties. The union is demanding that employer contributions to the occupational pension scheme be more than doubled - from 820 euros to 1,800 euros per month, according to a sample calculation by the VC. VC President Andreas Pinheiro stated in Frankfurt that Lufthansa pilots' company pensions were "incredibly far behind" those of competitors Air France and KLM. At Lufthansa, the range currently sits between 2,000 and 5,000 euros per month.
In contrast, Lufthansa HR chief Niggemann argued that the pension provision at the carrier was excellent compared to other airlines within the group as well as European competitors. The company estimates the company pension for long-serving full-time employees at an average of 5,400 euros, which comes in addition to the statutory pension of approximately 3,000 euros. Lufthansa rejects higher contributions and intends to modify the system, which depends on capital market returns, only on a cost-neutral basis. The manager stated that the core brand, Lufthansa Classic, is no longer competitive on many short- and medium-haul routes due to its personnel costs. Consequently, more profitable airlines within the group are increasingly taking over flights. "These strikes will not influence our strategy," Niggemann emphasized. "Aircraft fly where they can be operated profitably."
Given the escalation in the labor dispute with the VC and the cabin crew union UFO, which held a one-day strike on Friday, Lufthansa is seeking new formats for dialogue, such as mediation. "We share a collective responsibility for the future prospects of Lufthansa Classic and its employees," Niggemann appealed to the unions. The VC, however, did not rule out further strikes if the employer continues to ignore its demands.
(Report by Ilona Wissenbach and Reuters TV. Edited by Olaf Brenner. For inquiries, please contact the editorial management at frankfurt.newsroom@thomsonreuters.com)
