FRANKFURT Air Berlin (AB1.DE) has reached an agreement on pay and conditions for its cabin crew, helping it as it embarks on a drastic restructuring, it said on Saturday.
The loss-making German airline this week announced sweeping changes to the company including leasing 40 planes to Lufthansa (LHAG.DE), putting its popular tourist flights into a separate unit, and cutting around 1,200 administrative jobs.
The deal with trade union Verdi brings the 2,600 cabin crew staff represented by the union, some of whom came from other organizations with their own wage deals, under a single umbrella agreement on pay and conditions.
"This will help us to tackle and implement the extensive strategic changes that are necessary for the new Air Berlin to become a profitable and growing airline network with a clear profile," Chief Executive Stefan Pichler said.
Verdi was not immediately reachable for comment on the deal.
Air Berlin, like its bigger rival Lufthansa (LHAG.DE), is still trying to reach agreement with pilots' union Vereinigung Cockpit over pay and conditions.
"We are in constructive talks with Vereinigung Cockpit and are confident that together we will reach a deal acceptable to both sides," Pichler said in a statement.
(Reporting by Georgina Prodhan; Editing by Robin Pomeroy)