Lufthansa's CEO, Carsten Spohr, stands firm on cost-cutting measures and supports the establishment of new airline ventures.
Firebrand Dispute: Lufthansa CEO Stands Firm on Cost-Cutting, Unions Cry Foul
In a blunt defense of his cost-saving measures, Lufthansa CEO Carsten Spohr insists on the strategic necessity of creating new airlines outside the core Lufthansa airline. These ancillary companies, such as Discover, Edelweiß, Eurowings, and City Airlines, offer more affordable structures, allowing for expanded flight destinations.
For instance, Eurowings, with its fleet of around 100 aircraft situated outside the hubs of Frankfurt and Munich, serves as a popular provider of tourist flights. Meanwhile, City Airlines will be deployed for feeder flights to Frankfurt and Munich.
However, unions like the Cockpit Association for pilots and UFO for cabin crew have long criticized this strategy, labeling it as self-destructive corporate competition. On Monday, UFO chairman Joachim Vázquez Bürger dubbed the competitive landscape as troubling.
Flying High on Discontent: The Pilots' Demand
The Cockpit Association is urging Lufthansa to engage in wage negotiations with the approximately 4800 pilots at the core Lufthansa by May. Should these discussions fail, renewed strikes at the loss-making core brand could ensue. Frank Blanken, VC spokesman, hinted at potential repercussions if the employer side hesitated to negotiate.
The financial slump at the core Lufthansa label last year was partly attributed to delayed aircraft deliveries and high personnel expenses in Germany, according to Spohr. The CEO expects the new federal government to trim state costs for air safety and air traffic control, as he believes it's unfavorable for the government for Lufthansa to stagnate domestically.
DPA
The Soaring Tide of Wage Negotiations
The ongoing wage negotiations between Lufthansa and its pilots union, Vereinigung Cockpit (VC), are nearing a critical juncture. The VC is pushing for immediate discussions regarding retirement and transitional benefits for Lufthansa's pilots. While both parties have been negotiating since May 1, 2025, due to the termination of the collective agreements by Lufthansa and the VC, a resolution is urgently required to prevent mounting pilot discontent.
The central issues at stake—retirement benefits (TV Rente) and transitional benefits (TV ÜV)—have been under negotiation for years. The union is anxious about structural flaws in the existing pension systems and unresolved issues from adjustments made in 2017.
With growing discontent among pilots, delays in negotiations could potentially lead to strikes if an agreement isn't reached promptly. The impact on Lufthansa's financial performance and international competitiveness may be considerable if the situation persists unresolved. Meanwhile, the subsidiaries, often operating under different wage agreements, may capitalize on a cost advantage that engenders internal competition, compromising working conditions and standards at the core Lufthansa brand.
The ongoing wage negotiations between Lufthansa and its pilots union, Vereinigung Cockpit (VC), require immediate attention, especially considering the cost-cutting strategies in the industry, finance, and business fields. A resolution is essential to prevent escalating discontent and potential strikes, which could negatively affect Lufthansa's financial performance and international competitiveness.
Given the strained relationship between Lufthansa and its unions, it's crucial that both parties address contentious issues like retirement and transitional benefits for pilots, especially as subsidiaries under different wage agreements may capitalize on a cost advantage, potentially compromising working conditions and standards at the core Lufthansa brand.
