For the third time within aweek, German flight giant Lufthansa finds itself in the midst of yet another strike. This latest walk-off in the series is an extension of the previous two strikes with the dispute revolving around working conditions and pay. The cabin crew union is demanding a 5% wage increase for its members as well as assurances against job outsourcing. The airline, on the other hand is offering a 3.5% wage raise accompanied by an increase in working hours.
The magnitude of this latest event is greater than its two precursors as this strike has resulted in grounding half of Lufthansa’s flights. If you consider that on average, Lufthansa runs 18,000 flights a day and approximately half of these have been called off because of the strike, it is a clear indicator of the sort of impact that it can have on the airline. This strike has affected all major airports across Germany; Frankfurt in particular. Other domestic hubs where cancellations have surfaced are Berlin, Munich, Hamburg, and Stuttgart.
The earlier strikes had involved cancellations of short haul flights but this particular strike is having an impact on the long haul services too. Long haul destinations extending to the United States and East Asia have also been disrupted due to the walk-out.
Previous strikes had been executed at a short notice of six hours only leaving thousands of frustrated customers stranded. However, Lufthansa was better prepared this time round and had informed around 60,000 passengers ahead of time that their flights had been cancelled. The airline’s website provided updated information on the cancellations and offered alternate means of travel including train vouchers and various telephone services for more assistance.
The strike is scheduled as a 24-hour walk out during which cabin crew representatives and the airlines management hope to resume talks and reach a mutual agreement. Negotiations which had been in the works for the past 13 months first reached a standstill recently, which followed by two more strikes; first at Frankfurt and then at Munich and Berlin airports. The strikes have reportedly cost the airline around 10 million Euros ($12m) so far. This latest strike is expected to add a phenomenal 7 million Euros ($9m) to that figure.
The airline is facing severe competition from Gulf carriers like Emirates, Etihad Airways and Qatar Airways who currently offers a more cost effective flights on certain routes like Europe and East Asia. In addition to competitive pricing by other airlines, Lufthansa is battling to cope with rising fuel prices by implementing a cost reduction program.
Both parties are hopeful that no further strikes will follow. Union chairman Nicoley Baublies told reporters that both sides had consented to calling in a mediator to assist with resolving the dispute. He seemed hopeful that Lufthansa management may be ready to resume talks.
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