Frankfurt: Managers and pilots of Air Berlin have agreed to pay cuts as the struggling German airline tries to rein in costs with a new restructuring programme, the carrier said on Saturday.
About 80 managers will see their remuneration slashed by between 5 and 10 per cent this year, and the pilots will also make a contribution to the latest cost cutting effort, a spokesman said.
According to German magazine Der Spiegel, the 1,250 pilots are waiving a 4 per cent 2016 pay increase and will vote in the autumn on whether to also give up a salary increase in 2017.
The pilots’ union Vereinigung Cockpit was not immediately available for comment.
The airline, 29 per cent owned by Abu Dhabi-based Etihad, is trying to return to profit after years of losses, and new chief executive Stefan Pichler has been scrutinising the carrier’s network and fleet in a bid to bring down costs.
The board has also decided to change the policy for overtime hours, which will be compensated for in free time rather than extra pay.
