Lufthansa and union Verdi reach first-ever collective agreement for flight attendants and pilots.

• The Lufthansa strike impacted Munich as well as Frankfurt, its main hubs, while CityLine cabin crew walked out at nine airports.
• Lufthansa brand chief Jens Ritter criticized the action as "completely disproportionate."
• UFO negotiators said escalation was inevitable given stalled talks. 
• According to management, the newly founded airline is intended to increasingly take over regional feeder flights, which were previously handled by the almost identically named Lufthansa CityLine. 

The union Verdi and the Lufthansa Group have reached an initial collective bargaining agreement for the flight crew of the subsidiary City Airlines.

Both the sides announced on Friday that they had agreed on a first-ever collective agreement for flight attendants and pilots with a three-year term until the end of March 2029.

The deal, reached after marathon talks last week, will lift basic salaries by between 20% and 35% in three stages through March 2029, and includes extra days off, more vacation, improved roster planning and expanded pension support, Verdi said.

This creates a stable foundation for further growth while also addressing the economic challenges of the highly competitive European short-haul market, Lufthansa explained .

"Employees will receive significantly higher salaries over the next few years, and working conditions will also be improved step by step despite the enormous growth trajectory," said Verdi negotiator Marvin Reschinsky.

• Hundreds of flights were canceled again on Friday due to a strike by flight crews. Thousands of passengers were stranded.
• However, amidst the labor dispute, the company announced that it had reached a collective bargaining agreement with a subsidiary without any strike action.
• The negotiating partner is Verdi , a rival union to the cabin crew union UFO, which had called for the current strike. 

The group has said it plans to close CityLine by year-end, with its feeder operations transitioning to City Airlines, which was founded in 2022 as a cost-efficient alternative amid growing competitive pressures in Europe's aviation industry.

Founded in 2023, Lufthansa subsidiary City Airlines, like the also newly established flight operation Discover, is intended to operate significantly cheaper and with lower personnel costs than the core brand Lufthansa (Classic).

• The union Verdi has secured pay increases of 20 to 35 percent for cockpit and cabin crew, Verdi announced.
• Base salaries will be increased in three stages. Additional income increases, such as bonuses, are also planned.
• Furthermore, employees will receive an extra day off per month, two additional vacation days per year, better planning of vacation and leisure time, and more part-time options, Verdi stated.

The airline is to take over the lead in European feeder traffic for Lufthansa Airlines at Munich Airport and, for the past few weeks, also at the hub in Frankfurt am Main, it was announced. "The company employs around 500 cockpit and cabin crew at both locations."

Meanwhile, strikes are underway at the core Lufthansa brand and its regional subsidiary Cityline, which is facing closure. The closure plan has sparked anger among CityLine's staff, who fear job losses and uncertain futures. 

The industrial action by cabin crew is causing the cancellation of hundreds of Lufthansa flights and affecting tens of thousands of passengers returning home over the Easter holidays.

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