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BERLIN, Feb 19 (Reuters) - Germany's Lufthansa hasset out plans for growth in fleet and staff numbers at its mainairlines business in exchange for cost cuts as it tries to end along-running labour dispute with pilots.
Lufthansa is trying to trim costs and expand budgetoperations to better compete with both low-cost carriers such asRyanair and easyJet and Middle East rivals likeEmirates and Turkish Airlines.
Lufthansa at a staff meeting on Thursday proposed a new pactfor growth and employment at its Lufthansa German airlines unit- comprising Lufthansa and Germanwings-branded flights.
It foresees the fleet stationed at Frankfurt and Munichrising to 340 planes from the current 313 by 2010 and staffnumbers at Lufthansa Passage increasing by around 1,800 from33,500. But that is dependent on cost cuts being achieved, aLufthansa spokesman said.
Further details will be negotiated in the coming months andLufthansa hopes to be able to put the pact in place fromSeptember.
"We know we can't immediately close the cost gap with rivalssuch as easyJet or Turkish Airlines," board member Karl UlrichGarnadt said in a statement. "But we must find a way to adaptour cost development to that of the market."
Pilots union Vereinigung Cockpit (VC) staged 10 strikes lastyear and held a two-day walkout at the carrier's Germanwingsunit earlier this month as it tries to pressure management in arow over changes to early retirement benefits.
It is also against management plans to expand low-costoperations, fearing it could lead to worse pay and conditions,and erode jobs at Lufthansa's main brand.
The airline said it would like to immediately continue talkswith labour representatives but that they would only besuccessful if no strikes were held.
Cabin crew union UFO has agreed to hold off industrialaction for the next few months and has started talks withLufthansa, but VC has not made a similar promise. (Reporting by Victoria Bryan; Editing by Mark Heinrich)
