Deutsche Lufthansa AG canceled thousands of flights at the start of a three-day strike by pilots that’s set to cause the worst disruption in its history amid a campaign to slash costs and stay competitive.
Deutsche Lufthansa AG pilots voted to go on strike in a dispute over pay and retirement benefits at Europe’s second-largest airline, complicating a turnaround plan for incoming Chief Executive Officer Carsten Spohr.
Deutsche Lufthansa AG’s pay skirmish with its pilots, already among the best paid in Europe, stands in contrast to rival IAG SA’s success in slashing wages - - and reaping investors’ reward in the process.
Deutsche Lufthansa AG, Europe’s second-biggest airline, said it will hold passenger capacity steady this year and won’t update its intercontinental fleet until a 1.5 billion-euro ($2 billion) savings plan is completed.
Deutsche Lufthansa AG expects its short-haul flight network to be profitable as of 2013, Sueddeutsche Zeitung reported, citing an interview with Carsten Spohr, head of the company’s German airline operations.
Deutsche Lufthansa AG, Europe’s second-largest airline, said losses at the Germanwings discount unit will shrink this year while costs for upgrading cabins and lounges will top 500 million euros ($682 million) through 2015.