Lufthansa braces for next strike as board debates budget carrier plan
Group shares are down 8 percent canada goose coats this year
By Victoria Bryan
BERLIN, Dec 3 cheap canada goose uk (Reuters) Lufthansa board meets on Wednesday to approve expansion of its budget flights Canada Goose sale against the backdrop of deteriorating relations with pilots who are now planning their tenth Canada Goose Online strike this year.
With the dust barely settled after this week two day walkout that forced Lufthansa to cancel Canada Goose Outlet half its flights, affecting 150,000 Canada Goose online passengers, pilots salecanadagooseoutlets union Vereinigung Cockpit called Canada Goose Jackets another strike cheap Canada Goose for Thursday.
the pilots have already announced the sale canada goose outlets next strike while one is still ongoing is completely incomprehensible, canada goose Lufthansa said in response to the union announcement late on Tuesday.
However, this year canada goose clearance 160 million euro ($198 million) hit to operating profit as a direct result of the dispute over proposed changes to an early retirement scheme is only the tip of the Lufthansa iceberg and highlights the difficulty canada goose uk shop facing traditional airlines uk canada goose aiming to cut costs to counter the threat to their surivival from leaner rivals.
Lufthansa is battling to remain competitive in the face of the relentless march of budget carriers such as Ryanair canada goose black friday sale and easyJet and Gulf operators including uk canada goose outlet Emirates, Etihad and Qatar on canada goose uk black friday lucrative long haul routes.
Hence the company determination to push ahead with expansion of regional canada goose coats on sale airline Eurowings into a no frills platform alongside its existing budget carrier Germanwings. It is also planning a separate low cost brand for long haul canada goose factory sale flights.
Lufthansa, which traditionally targets mainly business customers, wants to chase faster market growth by boosting low cost services to price canadian goose jacket sensitive tourists, with Chief Executive Carsten Spohr vowing to remain strong despite pilot resistance. Lufthansa cannot remain competitive with structures established decades ago, Spohr said at the company third buy canada goose jacket quarter results in October.
The company has reached an deal with cabin crew on cutting costs on some Lufthansa branded flights to tourist destinations, but not with the pilots covered by a collective Canada Goose Parka labour agreement at Lufthansa and Germanwings.
Spohr has said this will not hold back Lufthansa, adding that it could seek pilots from elsewhere within the Group, which also includes Austrian Airlines and Swiss.
However, labour representatives are likely to back the plans for a new low cost, long haul brand at Wednesday board meeting, a source familiar with the talks told Reuters.
Thursday strike will run from 0200 GMT to 2259 GMT, affecting both long haul and buy canada goose jacket cheap cargo canada goose store flights, and Lufthansa said it is working at top speed to revise flight plans.
Lufthansa has managed so far to keep the strike costs under control, but the latest walkouts could threaten its 2014 profit target. After the eighth walkout of the year in October finance chief Simone Menne said the full year target for operating profit of 1 billion euros canada goose clearance sale could be at risk if further strikes occurred before the end of the year.
Lufthansa shares are down 8 percent this Canada Goose Coats On Sale year, against a canada goose uk outlet 14.5 percent gain by European travel and leisure stocks. (1 US dollar = 0.8084 euro) (Additional reporting by Peter Maushagen; Editing by David Goodman).