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’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.
British Airways parent IAG SA sealed a pay deal with ground staff at unprofitable Spanish arm Iberia, securing the last outstanding labor accord as group Chief Executive Officer Willie Walsh seeks to end losses there.
International Consolidated Airlines Group SA Chief Executive Officer Willie Walsh earned close to 5 million pounds ($8.36 million) in 2013 after base pay frozen at 825,000 pounds was swollen by performance-based awards.
British Airways parent IAG SA said unions representing pilots and cabin crew at unprofitable Spanish unit Iberia agreed to raise productivity as part of a turnaround program eliminating more than 3,000 jobs.
IAG Chief Executive Officer Willie Walsh said he’ll move forward with a cost-cutting strategy at the Madrid-based Iberia unit of Europe’s third-largest airline after unions spurned the latest plan to reduce headcount.