Lufthansa pilots strike for 3rd day, 700 flights cancelled

Frankfurt

LUFTHANSA pilots began a third straight day of walkouts on Friday, grounding 700 flights as they try to put pressure on management in a protracted row over early retirement benefits and cost cuts.

Lufthansa wants to cut spending to levels nearer those of its rivals as it is squeezed by budget carriers Ryanair and easyJet on European routes and by airlines such as Turkish and Emirates on long-haul flights. Including Friday's strike, pilots have walked out 14 times since last April, costing Lufthansa more than 200 million euros (S$297 million) in lost operating profit last year alone.

Other Lufthansa employees are starting to worry the row could damage the business for good. "We fortunately have very loyal customers, but if this continues in the long run and we aren't able to offer the reliability we need, then it could become a problem for our customers," Peter Gerber, chief executive of Lufthansa Cargo, told Reuters.

Lufthansa Cargo said all its freight-only flights would operate on Thursday, but the strike would affect the freight it carries in the holds of passenger planes. Lufthansa cancelled 84 of its planned 153 long-haul flights for Thursday, affecting 18,000 passengers, a spokesman said.

Pilots' union Vereinigung Cockpit (VC) is extending the strike to short and medium-haul Lufthansa flights on Friday and said it would strike again on Saturday on long-haul and cargo flights.

Lufthansa said it was cancelling 700 short and medium-haul flights on Friday, equivalent to about half its scheduled flights, while another 90 were being cancelled because of a strike by Italian air traffic controllers.

It said it would still be able to fly about a third of its scheduled flights on Saturday, but said the additional strike represented a new escalation of the conflict, which it feared was having a long-term impact on the reputation of the company.

Pilot strikes cost Lufthansa more than 200 million euros in lost operating profit last year.

The row involves early retirement benefits that VC wants to keep but which Lufthansa wants to change for new starters.

The pilots also want Lufthansa to enter joint mediation on other outstanding issues, such as pay and bringing costs down on flights to tourist destinations. Lufthansa has rejected the demand. Reuters