Air Berlin mulls divestment of long haul business
Sat Mar 7, 2009 11:55am EST
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FRANKFURT, March 7 (Reuters) - Germany's second biggest airline Air Berlin (AB1.DE) is considering whether to divest the long distance business of its charter airline subsidiary LTU, a spokesman said on Saturday.
"The whole long haul (business) is under review," the spokesman said, pointing to decreasing demand and high wage claims by pilot union VC. He added that a divestment or selling the business would be two options.
Air Berlin had offered to increase wages by 3.5 percent as well as job guarantees until 2010, which was rejected by VC, the spokesman said.
German magazine WirtschaftsWoche cited unidentified sources as saying that the Vereinigung Cockpit union could launch strikes at the company starting the last weekend of March.
The magazine cited company sources as saying that the union has initiated a strike ballot in February.
Air Berlin took over LTU in 2007, whereby the company added most of its long-haul capacities. Air Berlin, among other destinations, offers flights to Southeast Asia, the United States and the Caribbean.
(Reuters)
Sat Mar 7, 2009 11:55am EST
..
FRANKFURT, March 7 (Reuters) - Germany's second biggest airline Air Berlin (AB1.DE) is considering whether to divest the long distance business of its charter airline subsidiary LTU, a spokesman said on Saturday.
"The whole long haul (business) is under review," the spokesman said, pointing to decreasing demand and high wage claims by pilot union VC. He added that a divestment or selling the business would be two options.
Air Berlin had offered to increase wages by 3.5 percent as well as job guarantees until 2010, which was rejected by VC, the spokesman said.
German magazine WirtschaftsWoche cited unidentified sources as saying that the Vereinigung Cockpit union could launch strikes at the company starting the last weekend of March.
The magazine cited company sources as saying that the union has initiated a strike ballot in February.
Air Berlin took over LTU in 2007, whereby the company added most of its long-haul capacities. Air Berlin, among other destinations, offers flights to Southeast Asia, the United States and the Caribbean.
(Reuters)
