How Much Can Lufthansa Lose in Pilots’ Strike?

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April 2 (Bloomberg) -- Douglas McNeill investment director at Charles Stanley & Co., discusses the potential financial damage to Lufthansa as a labor dispute with pilots has led to a strike grounding thousands of flights over the past three days on Bloomberg Television’s “The Pulse.”

Bit of his magic?

The boss of the ecb has been able to talk down whatever he wants, be it yields or currency.

The bumblebee speech here in london -- since he offered these increasingly not famous words, talking about the currency.

It has barely budged.

Today, 1.3790. are we going to get action from the ecb?

Lufthansa pilot strike starts and affects 400 25,000 passengers.

It could cost more than 30 million euros.

-- 420 5000 passengers.

It could cost more than 30 million euros.

Give us a sense of whether this is considered a loss or not.

Answer investments -- in certain investments, the numbers seem in line with what we would expect from an airline loss.

We have a precedent from lufthansa back in 2010 when pilots went on strike.

That was four days.

It was called off after one, but most of the damage had been done.

The damage was 48 million euros.

Something like 10 million euros a day looks about right.

You have to put that in context this year.

Lufthansa will earn over a billion euros at the pretax level.

It is relatively small when you compare to that.

Profits can be hard to come by in the airline business, so you do not want to give them up lightly.

They have been trying to restructure for some years now.

Pilots are pushing back ar.

The management is not taking as from the line as you might have thought.

The pilots think they have some room to put some pressure on the company.

We see other airlines faced with those of the sort fight back strongly with court actions, injunctions to make strikes impossible.

We saw a ba boot passengers onto all their carriers, trying to get people to their destinations.

Network ready well.

-- that worked pretty well.

We are not seeing lufthansa's management do that this time around.

They are amongst the highest paid in the industry?

That is correct.

With a bit of overtime, they can earn up to 200,000 euros a year.

That is the top end of the industry.

There are plenty of airlines were able be half that or even less.

You can see why they are key to make some -- keen to make some changes.

These guys are running two or three services a day from big german airports like frankfurt and their costs are a whole lot lower.

They are serious matters.

How does this get resolved?

Lufthansa clearly needs to restructure.

It is not delivering what willy walsh has delivered a ba.

What is management need to do?

If you were running this business, what would you do?

What else can be done?

A tougher line would be one thing.

They have plenty of advantages, management.

They are blessed with a strong balance sheets.

4 billion or 5 billion euros in cash in the bank.

Would you book a flight with lufthansa in the next few weeks?

If i had the alternative of going with emirates or ryanair, or easyjet, all of these airlines have fun to your flights in and around germany.

A few people will take that view.

-- plenty of people will take that view.

Still to come, rapper musical mobile and sports agent, jay-z is a global phenomenon.

Will his brand last?

We will talk about that when we come back.


This text has been automatically generated. It may not be 100% accurate.


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