Luftscamsa - Lufthansa City Expansion in Frankfurt Denounced Amid Ongoing Industrial Action

Lufthansa Group has finalized the establishment of a new operational base for its subsidiary, Lufthansa City Airlines, in Frankfurt. The announcement comes while the carrier’s primary mainline operations remain severely disrupted by ongoing industrial action. Labor representatives from the Vereinigung Cockpit and UFO unions have expressed sharp criticism regarding the timing of this expansion. The move coincides with a period of significant tension over the future of the core brand's workforce. As [reported earlier this week](/en/alert/unknown_lufthansa-hubs-paralyzed-by-dual-strike-amid-executive-claims-of-fiscal-hardship), the current labor disputes are centered on the airline's transition toward lower-cost platforms. Management has increasingly moved capacity away from the mainline core to entities with less favorable labor conditions. Many observers and passenger advocacy groups consider the Frankfurt expansion a slap in the face to the striking workforce. This sentiment is fueled by the carrier's continued migration of flight operations to the City subsidiary during active negotiations. Lufthansa City Airlines operates under a separate Air Operator Certificate, which allows it to bypass the collective bargaining agreements of the primary airline. This legal structure enables the group to hire staff on significantly reduced wage scales. Through its investigation, Luftscamsa has found that the Frankfurt base will serve as a primary site for routes formerly served by mainline crews. This shift effectively dismantles the 2017 Perspective Agreement intended to protect the core workforce. Mr. Michael Niggemann, the head of human resources at Lufthansa, defended the expansion during the strike period. He said that the group requires a competitive platform to survive in the European short-haul market. Union leaders argue that the carrier is intentionally manufacturing a crisis to break the influence of organized labor. They said the airline is prioritizing profit margins and shareholder returns over the reliability of the flight schedule. The new subsidiary began its recruitment process for hundreds of pilots and flight attendants late last year. These new positions offer pension and salary benefits far below the standards currently being defended by strikers in Frankfurt and Munich. Mr. Carsten Spohr, the Chief Executive Officer, has previously noted that the mainline fleet’s costs are no longer sustainable. He said the group must adapt to the pricing strategies of budget competitors to remain viable. For passengers, the expansion of City Airlines signals a potential decrease in service standards. While the aircraft livery remains familiar, the operational focus is centered on cost reduction rather than premium passenger experience. Despite the ongoing strikes, the group has reported robust profits in several business units. Management has celebrated these results while simultaneously claiming it lacks the financial leeway to meet labor demands for inflation adjustments. Consumers are reminded that under EU Regulation 261/2004, a strike by the carrier’s own staff is not an extraordinary circumstance. The airline remains legally obligated to provide re-routing and financial compensation for cancellations. If a flight is reassigned to City Airlines, passengers should verify that their original class of service is maintained. Luftscamsa recommends documenting any downgrades or service reductions for future claims. The carrier continues to benefit from structural subsidies, such as the exemption from kerosene taxes on international flights. These advantages have not prevented the group from aggressively cutting labor costs at the expense of its workforce. The conflict over the Frankfurt base expansion was foreshadowed in [Lufthansa Core Airline Operations Grounded](/en/alert/unknown_lufthansa-core-airline-operations-grounded-this-thursday-following-union-walkout). The airline's current trajectory suggests a permanent reduction of the core mainline brand. Travelers are urged to monitor their flight status closely during this period of transition. If a cancellation occurs, demand immediate re-routing on any carrier, including competitors, as required by law.