Lufthansa strike deepens losses

Lufthansa strike deepened yesterday. For the last 18 months it was 13th pilots strike. Lufthansa union - Vereinigung Cockpit is deepening conflict with the company's management relating to pension reform in pilots have so far received 60% of their salary ten years after retirement. The second problem is the subsidiary Eurowings, which is registered in Austria and hire employees foreigners.
General Management of Lufthansa unwilling to make any concessions, despite the fact that last the company registered direct losses from strikes in excess of 300 million euros. The net profit of the Lufthansa Group for 2014 was 5.7 times lower than in 2013, while Lufthansa Passage fell by -11%. This was a major reason decision not to pay dividends for 2014. Up to today the company have canceled about 1,000 flights a far and middle distance. Total 2014 when ten strikes are 4000 flights were canceled. Tactics of the management is to reduce costs, but it exacerbates the conflict with union and the potential for greater operating losses.
Currently the price LHA: GR (XETRA) was EUR 11.74 at 52WK RANGE: 10.25-15.53 and YTD RETURN = -15.12%.