Lufthansa agrees pay deal with pilot union

Lufthansa has struck a deal to solve a five-year-long dispute with pilots that has cost it millions of euros.

Germany's largest airline and the Cockpit union have agreed upon an arbitrator's proposal for a new wage agreement that covers about 5,400 pilots.

The firm has agreed to a four-stage 8.7% total wage increase and a one-off 30m-euro (£25.5m) payment.

That works out at some 5,000 euros to 6,000 euros per employee.

Cockpit union spokesman Markus Wahl said although union negotiators had agreed upon the deal, its members would have the final say on whether to accept.

The dispute has seen pilots take part in 15 strikes.

The union had wanted an average annual pay rise of 3.7% for its members in Germany, backdated to 2012.

Despite a record profit last year, the company said it had been forced to cut costs to compete with budget rivals such as Ryanair in Europe and the likes of Emirates on long-haul routes.