Under strike threat, Lufthansa to continue talks with pilots' union

FRANKFURT (Reuters) -Lufthansa will continue talks with German pilots' union VC over a pension dispute, both parties said on Friday, averting a possible strike at its core airline for the time being.

The union's members had previously voted in favour of a walkout to pressure Lufthansa into agreeing a more generous pension deal.

After constructive talks on Thursday, both parties said they are exploring the option of further negotiations and new dates.

While Lufthansa has not submitted a new offer, there have been indications that a solution can be found, said a spokesperson for VC, or Vereinigung Cockpit.

"We are still committed to finding a solution without strikes," said a Lufthansa spokesperson.

The union is demanding higher employer contributions to company pension plans for the 4,800 cockpit employees of the core airline brand Lufthansa and the cargo subsidiary Lufthansa Cargo.

Lufthansa sees no financial leeway for this, as its core brand has excessive costs and hasn't been earning any money since last year, and has threatened to move more jobs to its cheaper subsidiaries, Discover and City Airlines.

(Reporting by Ilona Wissenbach, Writing by Miranda MurrayEditing by Ludwig Burger)