Frankfurt: Deutsche Lufthansa AG pilots who went on strike at the carrier’s long-haul business Tuesday acted to paralyse operations at its short-haul arm Wednesday in a move aimed at causing maximum disruption in a dispute over cost cuts.
Lufthansa cancelled more than 1,000 flights after the Vereinigung Cockpit union said today’s walkout by aircrew who fly wide-body planes would be followed by a strike by pilots on Airbus Group SE A320, Boeing Co. 737 and Embraer SA jets. The carrier said it would challenge the move in court.
Pilots have resumed industrial action six months after 12 rounds of strikes ended as management and unions came together in the wake of a crash at Lufthansa’s Germanwings arm. Chief Executive Officer Carsten Spohr, who said last week he’s ready to endure more strikes to compete with low-cost carriers and Gulf rivals, has already twice cut earnings guidance.
“The financial damage is increasing,” Dirk Schlamp, an analyst at DZ Bank in Frankfurt, said in a note, adding that there is a “relative high likelihood” of further action that will also take a reputational toll on Lufthansa.
The carrier said it has filed injunctions with courts in Cologne, where it is based, and Frankfurt, home to its main hub, to stop the latest strike. An emergency suit lodged by the airline in October was rejected by courts in Frankfurt.
Bettina Volkens, the Lufthansa board member for human resources, said in a statement that each strike diminishes the scope for finding a solution to the conflict. The first walkout was in April 2014, with the most-recent before this week coming three days before the March 24 crash in the French Alps.
Key Month
Lufthansa was forced to begin scrapping flights Monday just to cope with today’s action, and the Wednesday walkout is likely to extend disruption into Thursday at least. The strike will include flights at Germanwings which are due to replace ones currently operated by the main airline — a switch that’s at the heart of Spohr’s plans to pare expenses.
September is generally an important month for carriers, with the end of the vacation season coinciding with a surge in business travel. Lufthansa said the walkout will hit families returning from vacation, with the summer break ending in two of Germany’s largest states this weekend.
Pilots must pitch in like other groups to help Lufthansa become more competitive, the company has said, while the union aims to prevent aircraft and flight deck jobs being moved beyond the mainline brand and even to Austria, where the group has created a low-cost subsidiary.
Lufthansa plans to publish an amended schedule for Wednesday on Tuesday afternoon.
