Lufthansa To Cancel Almost All Flights?

Lufthansa is heading to yet another bruising confrontation on labour with the pilot union Vereinigung Cockpit calling for a two-day strike on 13 and 14 April.

This escalation of an ongoing dispute follows repeated reports of disruptions affecting the German flag carrier’s network, not just in the last month but in recent years, impacting the business and its customers.

The union says that Lufthansa, Lufthansa Cargo, and Lufthansa CityLine could be brought to a screeching halt with a work stop from 0001 on 13 April until 2359 on 14 April. Eurowings pilots are also part of the action.

The timing matters, this is because Lufthansa has just been dealing with a completely separate cabin crew strike, which has pressured and, as described by Jens Ritter, the CEO, hurt the airline during the busy Easter travel period.

With the new pilot walkout, there’s an additional threat to the airline, which has already spent months, if not years, on and off trying to manage cancellations that have caused customer frustration and damaged its reputation due to tension between the company and its employees.

Now, Lufthansa has a way out, but one it has been struggling to achieve: an agreement with the union representing the pilots who are threatening to walk out. Now, the business needs to prepare for the strike if it goes ahead, as the impact on its schedule would span the two-day window.

Why Lufthansa Pilots Are Not Happy

At the centre of the dispute is the pension provision, with the union arguing that Lufthansa has, over time, not simply done enough to restore stronger retirement benefits for cockpit crew.

Reuters reported that the union’s strike call followed a period of negotiations that ultimately stalled, and, with no progress, the union needs to make harsh decisions to try to get the demands met and keep employees happy in a critical role within the business.

Trust is also important; unions lead in standing up for the employees that they represent, and if the consensus is that the handling of agreements and relations between airlines and their employees sours for whatever reason, that’s where these unions come into the equation.

Union leaders say the airline has not moved forward enough in talks. At the same time, Lufthansa argues that the unions’ requested changes for the pilots they represent are too costly and would undermine the company’s efforts to remain competitive and agile in uncertain times.

Wages, pensions, work-life balance, and more often become key talking points with employees, unions, and the airlines they work for, especially in Europe. For Lufthansa, this has been a persistent struggle for years.

What’s The Impact On Lufthansa?

There are two angles to analyse that impact Lufthansa with strikes such as these. First and foremost, the immediate impact of employees walking off the job is the need to slash capacity and, with that, reduce flights over the two days, hurting finances and causing frustration among passengers.

Given its hub locations in Frankfurt and Munich, these markets would absorb the bulk of the cancellations; however, even smaller German airports would also see services affected during the two days, impacting connecting passengers and even those on long-haul intercontinental flights.

However, if Lufthansa can reach a deal with employees, no matter how the deal looks, overall expenses will jump, and staff costs have been a major contributor to the rising costs of operating the airline, something it has been trying to offset but knows is an uphill battle.

Lufthansa is no stranger to heated discussions over the last two to three years, with various employees and unions, including cabin crew and ground handlers, going on strike. With each new agreement adding to the wage bill at the expense of keeping these employees on.

Ultimately, securing a deal has to be mutually beneficial, but strike action is often seen as a last resort for unions and employees to try and get a deal over the line and both parties to find an agreement, essentially forcing the hand of the airline and in this case Lufthansa.

What Does Lufthansa Have To Do?

For the strike not to go ahead over a two-day period, Lufthansa and the union need to come together and reach a settlement that is appropriate for both sides, not one that favors one over the other.

This means a longer-term agreement, more likely, which focuses on aspects such as wages, pensions, and security within the business, rather than short-term discussions that keep breaking down, or deals with a short timespan that require renegotiation shortly after and see the same problem reemerge.

Lufthansa must recognise pilots’ concerns, but it must also protect its overall cost base and ensure that flexibility remains part of its strategy; it is not in a position to accept a deal that would harm its operations.