CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Lufthansa pilots consider 2nd strike

Article By: ,  Financial Analyst
March 18, 2015 10:26 AM

Pilots of German airline Lufthansa are pondering whether to stage a second strike later in the week.

Flight crews are already staging industrial action today (March 18th), but are calling for it to be extended to Thursday. The strike has already seriously hindered Lufthansa's operations with 750 flights cancelled affecting 80,000 passengers. However, the airline confirmed that subsidiaries Germanwings and Eurowings will not be impacted by the action.

The pilots union, Vereinigung Cockpit, hopes the strikes put pressure on the Lufthansa management team to review its stance on the retirement benefits offered to pilots. The airline wants to abandon a programme which allows pilots to retire at the age of 55 and receive 60 per cent of their pay until they reach the statutory retirement age of 65.

This has sparked uproar among Vereinigung Cockpit members with the union accusing Lufthansa of offering younger pilots less attractive working conditions. These two factors, it says, has forced pilots to go on strike. It is just one of a series of strikes that significantly impacted the airline in recent years, which cost the operator €232 million (£165 million) last year.

The announcement resulted in a drop of Lufthansa's share price which fell 1.91 per cent as of 09:28 GMT today.

Strikes hurting airlines

Lufthansa's latest pilots strike is just one in a long line of similar incidents happening to airlines across Europe. While the German flag carrier is counting the cost of more industrial action, other companies, namely Air France-KLM, have also experienced issues of this ilk in the past.

In late 2014, the French-Dutch partnership lost €500 million in revenue after its pilots went on strike over plans to expand Air France's low-cost business Transavia. The union was unhappy with the lower rate of pay being offered by the budget airline compared to the traditional Air France operation.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024