Lufthansa has struck a deal with pilots to solve a bitter long-running dispute over pay that has cost the airline millions of euros from continued strike action.
The German airline has agreed a new wage agreement that will see around 5,400 pilots receive a four-stage 8.7 per cent pay rise and a one-off payment of around €5,000 - €6,000 per employee.
The dispute has been going on for five years, with around 14 strikes in that period. Originally Lufthansa offered pilots a 2.5 per cent pay increase, which they described as “inadequate” after seeing the basic salary for executive board members rise 30 per cent.
Lufthansa said the deal will cost around €85 million a year. In order to fund this, it said 40 aircraft will operate outside the agreement.
The new agreement will be in place until the end of 2019.