Lufthansa Group and pilots union Vereinigung Cockpit (VC) have agreed to mediation recommendations of salary increases totalling 8.7 per cent by the end of 2019.

Mediator Dr Gunter Pleuger has recommended a retroactive two per cent pay increase of two per cent from 1 January 2016, 2.3 per cent from 1 January 2017, another 2.4 per cent from 1 January 2018 and a further two per cent on 1 January 2019.

The pay increase for 5,400 pilots in the Group tariff agreement of Lufthansa, Lufthansa Cargo and Germanwings totals 8.7 per cent, with an additional one-off payment of €30 million ($31.7 million).

Lufthansa says the remuneration agreement will increase cockpit costs by €85 million a year and 40 aircraft will be operated outside the Group tariff agreement, in contrast with previous fleet planning to compensate for the additional costs.

Lufthansa chief human resources officer, Dr Bettina Volkens says: “Without any compensation in other collective agreements, we must, therefore, take the path of changing our fleet planning.”

“At the same time, we are continuing to work hard to find ways to reduce costs with our collective bargaining partner in order to achieve our growth potential in the Group tariff agreement, too.”

VC members will have the final vote, expected by the end of March, and the union says: “The final word now lies with the members, who will decide on the final acceptance of the conciliation under a vote.”