Labour strife at European airlines likely to persist

STOPPAGES at British Airways (BA) and Lufthansa continue, as the UK flag-carrier announces a four-day cabin-crew strike at the end of March, while its German counterpart prepares for a pilot's walkout in mid-April.

BA's announcement came after negotiations on pay and staffing levels with its 13,400-strong union broke down supposedly because of the airline's decision to withdraw terms it had offered earlier, reported London's Financial Times.

Despite the setback, BA, which expects to lose GBP7 million (US$10.5 million) a day from strikes, said full-year profit estimates remained unchanged, mostly because the advanced-notice of the strike, which allowed the chartering aircraft and hiring replacement cabin crew. BA recorded GBP401 million in pre-tax losses for the previous financial year and is expected to report further losses in the coming cycle.

Lufthansa's dispute with its 4,000 pilots is expected to cost EUR25 million (US$33.8 million) a day, dashing hopes of a much-needed recovery, following a EUR112 million ($151.8 million) loss in 2009.

(Source: www.Schednet.com)