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Share Price: 541.60
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Lufthansa reaches deal with cabin crew in long-running dispute

Thu, 30th Jun 2016 13:19

BERLIN, June 30 (Reuters) - Lufthansa and its maincabin crew union have reached a deal in a long-running disputeover pay, conditions and pensions, they said on Thursday, aboost for the carrier which is also negotiating with pilots.

The deal was achieved thanks to a mediator, who willformally announce the terms on Tuesday once a few final detailshave been agreed, the two sides said.

Until then, both sides said they had agreed to keep theterms confidential.

Lufthansa is trying to cut costs to better compete withlow-cost rivals within Europe, such as Ryanair andeasyJet, and also with leaner rivals such as Emiratesand Turkish Airlines, on long-haul routes.

Lufthansa management and the cabin crew union UFO have beenat loggerheads since September 2013, when Lufthansa said itwanted to cancel a decades-old early retirement scheme. The rowculminated in November, when UFO staged the longest-ever strikein the German carrier's history.

A dispute with its pilots stretches back four years but theunion and Lufthansa said last month they hope to reach a deal bythe end of July.

More than 20 issues were being discussed in the mediationprocess with cabin crew, ranging from pay, details of a pensionscheme, working conditions at low-cost carrier Eurowings andterms for moving staff to other airlines in Germany within theLufthansa group.

Shares in Lufthansa were up 1.3 percent at 1244 GMT.

(Reporting by Victoria Bryan and Klaus Lauer; Editing by ElaineHardcastle)

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