Aviation

Lufthansa, union reach pay deal for ground staff

Following a one-day strike that resulted in the cancellation of more than 1,000 flights, Lufthansa and a union that represents its ground personnel in Germany have come to an agreement to resolve a salary dispute. The Verdi trade union and Lufthansa secured a compensation agreement on August 4th, resulting in salary increases for the airline’s thousands of ground staff.

Around 20,000 Lufthansa ground employees are represented by Verdi, and under the most recent agreement, their earnings will rise in two stages: by 2.5 percent starting in January 2023 and another 2.5 percent on July 1 of the next year. An initial 9.5 percent wage increase was the one the union requested.

According to Michael Niggemann, head of personnel at Lufthansa, “we stretched the pay rise over multiple steps and secured longer-term security of planning with an 18-month period due to the still-high loads from the pandemic and the uncertain economy.”

The union’s initial request for this year was a 9.5 percent salary raise. Its Wednesday last week strike added to the recent travel chaos in Europe. According to Lufthansa, the strike cost it about 35 million euros.

Niggemann reaffirmed the management of Lufthansa’s willingness to reach a settlement with regard to the upcoming talks with the cockpit and the cabin and expressed optimism that successful solutions can also be found here.

Aviation

Aeroflot Buys Used Planes for Spare Parts Amid Sanctions

In the face of ongoing Western sanctions that have severely impacted Russia’s aviation industry, Aeroflot, the country’s largest airline, has devised a strategic plan to bolster its fleet’s spare parts inventory.

The airline is set to acquire five Boeing 737-800BCF freighters from Atran Airlines, a move that will allow it to dismantle the aircraft for critical components. The planes, which will be transferred to Aeroflot’s low-cost subsidiary Pobeda, will not be converted into passenger jets but instead will be stripped for valuable parts to support existing operations.

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Aeroflot’s plan to purchase these Boeing 737-800BCF freighters comes as part of a broader strategy to mitigate the effects of Western sanctions, which have crippled the Russian aviation sector. With the sanctions restricting access to essential aircraft parts and spare components, Aeroflot is exploring alternative ways to maintain and repair its fleet.

Instead of converting the freighters from cargo to passenger planes, a process deemed “unreasonably expensive” under current sanctions, the airline intends to focus on extracting high-value components such as engines, landing gear, avionics, and other essential systems.

The deal will be structured in a way that allows Aeroflot to indirectly purchase the freighters through an insurance settlement with the aircraft’s lessor, AerCap.

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The Russian government’s insurance company will reimburse the aircraft’s value, and the planes will then be leased back to local operators. This method circumvents some of the restrictions imposed by international sanctions while ensuring that the airline gains access to the necessary components to support its fleet.

By dismantling the aircraft for spare parts, Aeroflot aims to secure critical resources for the ongoing maintenance of its existing fleet. Components from the Boeing 737-800BCF freighters, such as engines and avionics, are expected to be reused in other aircraft within Aeroflot’s network, ensuring that the airline can keep its operations running smoothly