South African Airways has set itself up for a confrontation with labour unions after the cash-strapped carrier initiated talks that could see its workforce reduced by almost a fifth. The reorganisation of all the airline’s units, excluding LCV Mango, Air Chefs and the SAA Technical unit, could result in 944 of its 5,149 employees being fired, SAA said Monday. The Congress of South African Trade Unions, the country’s biggest labour group, denounced the decision and accused the airline of failing to consult adequately. “It’s a reckless announcement. You cannot just throw people on the unemployment line,” the federation’s spokesman said Tuesday. “There is no talk to unions. They already know the specific number of people who are going to be retrenched. There are options that have to be explored.” <br/>
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A consortium including Korea’s Hyundai Development Co. has been named as the preferred bidder to take control of Asiana Airlines. Hyundai said the consortium will enter negotiations for a deal to purchase the 31.05% stake in Asiana currently held by Kumho Industrial. The parties did not disclose the purchase price in the filings, but local media report the consortium’s bid is worth about US$2.2b. Kumho is currently the largest stakeholder in the airline. Hyundai Development is a major Korean construction and infrastructure company that is diversifying into areas including resorts, hotels, shopping malls and duty-free sales. Some of these businesses have synergy opportunities with Asiana. The bid consortium also includes Mirae Asset Daewoo Co. <br/>
Lufthansa has agreed with its cabin crew labour union to enter arbitration over a wage dispute, the airline and the union said Tuesday, averting further strikes. Cabin crew held a strike over pay and pensions for 2 days last week, resulting in the cancellation of 1 in 5 flights, affecting around 180,000 passengers and costing the airline E10-E20m (US$11-$22m). The UFO labour union is obligated to "maintain industrial peace," Lufthansa said. "Strikes are accordingly excluded for the time being." Lufthansa said UFO's demands for higher expenses and purser allowances would be discussed. The parties will hold a joint press conference Thursday to announce details. <br/>