Lufthansa fails to secure pilots deal, adding to pension concern
Lufthansa’s pilot union said negotiations over pay, pensions and promotion have failed, adding to concern about the carrier’s debt and liabilities after S&P Global Ratings cited pension costs as a prime reason for putting it on watch for possible credit downgrade. Talks that began early this year on contracts and career paths for flight crew at the main Lufthansa passenger brand, Lufthansa Cargo and Germanwings ended without a deal, the Vereinigung Cockpit union said Friday. S&P has meanwhile revised its outlook on Lufthansa’s credit rating to negative from stable, it said after markets closed Thursday, describing a jump in the pension deficit to E10.8b (US$13b) as of June 30 from E6.6b Dec 31 as a “material credit weakness.” It urged the group to seek a pilot deal like one with cabin crew that cut liabilities by E800m. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-19/star/lufthansa-fails-to-secure-pilots-deal-adding-to-pension-concern
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Lufthansa fails to secure pilots deal, adding to pension concern
Lufthansa’s pilot union said negotiations over pay, pensions and promotion have failed, adding to concern about the carrier’s debt and liabilities after S&P Global Ratings cited pension costs as a prime reason for putting it on watch for possible credit downgrade. Talks that began early this year on contracts and career paths for flight crew at the main Lufthansa passenger brand, Lufthansa Cargo and Germanwings ended without a deal, the Vereinigung Cockpit union said Friday. S&P has meanwhile revised its outlook on Lufthansa’s credit rating to negative from stable, it said after markets closed Thursday, describing a jump in the pension deficit to E10.8b (US$13b) as of June 30 from E6.6b Dec 31 as a “material credit weakness.” It urged the group to seek a pilot deal like one with cabin crew that cut liabilities by E800m. <br/>
