Struggling Air Berlin clears pay cuts

  • 07/02/2016
Struggling Air Berlin clears pay cuts

Managers and pilots of Air Berlin have agreed to pay cuts as the struggling German airline tries to rein in costs with a new restructuring program.

About 80 managers will see their remuneration slashed by between 5 and 10 percent this year, and the pilots will also make a contribution to the latest cost cutting effort, a spokesman said on Saturday.

According to German magazine Der Spiegel, the 1250 pilots are waiving a 4 percent 2016 pay increase and will vote in the autumn on whether to also give up a salary increase in 2017.

The pilots' union Vereinigung Cockpit was not immediately available for comment.

The airline, 29 per cent owned by Abu Dhabi-based Etihad, is trying to return to profit after years of losses, and new chief executive Stefan Pichler has been scrutinising the carrier's network and fleet in a bid to bring down costs.

The board has also decided to change the policy for overtime hours, which will be compensated for in free time rather than extra pay.