Lufthansa is going to cut back on compensation to its pilots, but is not firing them for the time being. This is stated in an agreement that the German airline has concluded with the VC pilots' union.
The Lufthansa Group, which also includes Germanwings and Brussels Airlines, will reduce additional pilot allowances, such as pension payments, from September. Previously agreed salary increases for this year will be postponed until the beginning of next year. In return, no pilots will be fired until the beginning of the second quarter of 2021
These are pilots who work at Lufthansa, Lufthansa Cargo, the Lufthansa training institute and some of the Germanwings staff. Pilots of Brussels Airlines will therefore remain outside the deal.
The agreement between the airline and the union is short-term. However, the "significant" pilot overcapacity will persist beyond March 2021, the company believes, necessitating a long-term agreement. Lufthansa is thinking of shorter working weeks with corresponding salary reduction. Nor are new pilots being hired for the time being.
The German airline has been badly affected by the COVID-19 outbreak. The company previously announced that it wants to cut a total of 22,000 jobs, out of a total of 129,000. In the first half of the year, the Germans made a loss of 3.6 billion euros.