Strike forces Lufthansa to cancel flights

Submitted by solidarity on Sat, 09/01/2012 - 21:36

 

Strike forces Lufthansa to cancel flights

 
Last updated: August 31, 2012 5:54 pm
http://www.ft.com/intl/cms/s/0/aebaffc0-f345-11e1-9ca6-00144feabdc0.html...

Strike forces Lufthansa to cancel flights
By James Wilson in Frankfurt

©Reuters

Lufthansa is braced for further costly disruption after cancelling almost 200 flights on Friday following a strike by cabin staff.

The stoppage affected 26,000 passengers, highlighting the challenge facing the German airline as it tries to bear down on overheads amid tough conditions for European carriers.

The eight-hour strike involved flights to and from Frankfurt airport, Germany’s busiest and Lufthansa’s main operating base. The stoppage was called at short notice by the union representing cabin crew following the breakdown of long-running pay talks.

  •  
  •  

More

ON THIS STORY

ON THIS TOPIC

IN AIRLINES

The Independent Flight Attendants’ Organisation has threatened similar stoppages in coming days at Frankfurt or other airports. At least 18,000 of Lufthansa’s cabin staff are thought to be potentially involved in the dispute.

The escalation of the dispute with flight staff comes as Lufthansa, Europe’s largest airline by revenues, aims to cut administrative jobs. It is pursuing plans to eliminate 3,500 posts as it aims to reduce costs by at least €1.5bn through restructuring.

High fuel costs have added to years of fierce competition from lower-cost rivals such as Ryanair for Lufthansa and other European airlines, which are also suffering from excess capacity despite continuing consolidation. Lufthansa posted an operating loss in the first half of the year, although the second quarter was profitable.

Lufthansa said the dispute – which follows 13 months of inconclusive talks over pay – was being “waged at the expense of its customers”. Strikes at short notice make it more difficult for Lufthansa to make contingency arrangements, which the airline said was causing additional problems for passengers.

Peter Oppitzhauser, an analyst at Cheuvreux, said: “Lufthansa has such a heavy burden of fixed costs that labour costs are one of the few things the company can tweak if it wants to remain competitive. The dispute is not so much about the size of any pay rise but about the flexibility that Lufthansa wants to get from its workforce.”

Lufthansa was “sounding tougher about its stance in this dispute than it has in the past”, Mr Oppitzhauser said.

Friday’s stoppage began at 5am and affected mainly short and medium-haul flights but a number of flights to the US were also hit. By late afternoon on Friday about 190 flights had been cancelled. Flights by Lufthansa’s regional and Germanwings subsidiaries were not affected.

Other airlines using Frankfurt airport also suffered delays because of a shortage of parking spots because of grounded aircraft.