German airline Lufthansa and pilots' union Vereinigung Cockpit have agreed to a settlement proposed in mediation, ending a long-running and bitter dispute over salaries.
Lufthansa said that 5,400 pilots who fly for Lufthansa, Lufthansa Cargo and Germanwings would receive salary increases of 8.7 per cent in four phases as well as a one-off payment of between 5,000 and 6,000 euros (5,280 and 6,335 dollars) per person.
The mediation, led by Gunter Pleuger, started in December. Vereinigung Cockpit had sought a 22-per-cent wage increase over a period of five years for its members.
The labour dispute has been ongoing since 2012. There have been 14 strikes since then, resulting in 500 million euros in costs for the airline.
The agreement does not include all aspects of the dispute including pensions and further strikes have not been ruled out, Lufthansa said.