Lufthansa Appeals EU Court Ruling on Pandemic Bailout

At Lufthansa's annual general meeting, CEO Carsten Spohr defended the company's strategy of increasing the use of subsidiaries such as Discover Airlines, Edelweiss, and Eurowings to operate short-haul and tourist flights at lower costs, arguing that this is a 'strategic necessity' to remain competitive in Europe's aviation market. These measures, however, have faced strong opposition from pilot and cabin crew unions, which criticize the outsourcing of flights to subsidiaries not covered by core collective agreements as 'internal destructive competition' that undermines working conditions. The Cockpit Association and UFO union have called for urgent collective bargaining on retirement and transitional benefits for approximately 4,800 core Lufthansa pilots, warning of potential strikes if negotiations do not progress. Spohr attributed the core brand's financial losses to delayed aircraft deliveries and high personnel and location costs in Germany, and urged the German government to reduce state charges related to aviation security and air-traffic control. Shareholders have also voiced concerns about the long-term impact of these austerity measures. The ongoing tension highlights the balancing act Lufthansa faces between cost-cutting for competitiveness and maintaining labor relations within the group.