Published on : Tuesday, August 26, 2014
The decision taken by the pilots’ union of Lufthansa (LHAG.DE) on their strikes actions would be unavoidable incase of failure in pay talks. The airline’s shares dipped as the pilots expressed their views.
Lufthansa the largest airline by revenue is unable to reconcile to the terms set by its pilot union. The Vereinigung Cockpit representing the 5,400 pilots of Lufthansa staged a three days walk out earlier this year, costing the carrier a loss of 60 million euros (47.74 million pounds).
The union has decided in favour of industrial action as talks failed over the early retirement scheme.
On Monday morning, shares fell to 0.8 per cent; it was the only share that appeared to be at a loss in Germany’s blue-chip DAX index. GDAXI and one of the top fallers among European travel and leisure stocks .SXTP.
Longer strike would only threaten the earning of the company in this year felt Dirk Schlamp, the DZ Bank analyst. It would also burden the company’s reputation he added.
The strike has already been affecting booking since June. The airline profits are also going down due to the pilot strike.
Lufthansa is ready for talks but also added that discussions will not resolve anything as it didn’t in April. The airline is certain that no reconciliation would be reached at.
Tags: lufthansa
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