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The management of Lufthansa is urgently seeking a way out: the company is on the edge of bankruptcy

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The management of Lufthansa is urgently seeking a way out: the company is on the edge of bankruptcy

The management of Lufthansa is urgently seeking a way out: the company is on the edge of bankruptcy
November 24
10:30 2016

On Wednesday the pilots of the German airline Deutsche Lufthansa AG started a massive strike. The pilots are demanding the salary to be increased. The 14th strike for the past two years has led to the cancellation of 900 flights; more than two hundred thousand passengers have suffered from this.

The head of the airline said that the fulfillment of the employees’ requirements would lead to the bankruptcy of the air company. Carsten Spohr (CEO Deutsche Lufthansa AG) claims that the conflict cannot be resolved not because of the principled policy of the leadership, but due to the need to tightly control costs. Spohr said that the salary increase would not allow the company to compete in the market, which will lead to its collapse.

The air carrier has not been increasing the salary for five years. The interesting fact is that, due to the strikes, the company Deutsche Lufthansa AG has lost nearly half a billion euros over the past two years. The company’s management hopes to negotiate with the trade union through the arbitration court. If the strike lasts even on Friday, the company may lose about 10 million euros.

Despite the threat of bankruptcy, the airline’s stocks have risen today by 1.5%, the capitalization of the company Deutsche Lufthansa AG is estimated at 6 billion euros.

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1 Comment

  1. Alice
    Alice November 28, 15:49

    The trade union acts in the interests of employees and wants to improve their working conditions but it has not received a suitable offer from Lufthansa on compensation payments to the pilots. I strongly believe that the management of the company must continue the dialogue and reach a consensus, which suits both sides. If not, the pilots will continue the strike that can lead to more global consequences. The company has already lost great funds due to the strike as well as undermined confidence in the eyes of the clients. Only common sense and sensibility may help the management of the company solve this pressing issue!

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