Lufthansa has responded to the most recent strike by its pilots with a lawsuit against the labor committee of the Vereinigung Cockpit (VC) pilots’ union and a pledge to hire no new pilots under the terms of the current collective bargaining agreement at Lufthansa German Airlines, Lufthansa Cargo or Germanwings. As a result, it said, natural attrition at the group will lead to the gradual reduction of those divisions’ fleets.

The lawsuit calls for compensatory damages associated with the pilot strike of April 2014, when the union ordered strike action against Lufthansa Cargo even though its collective labor agreement remained in force. Lufthansa Group estimates the damages resulting from that strike totaled around €60 million ($67 million).

Following the cancellation of 84 out of 170 long-haul flights on Tuesday, Lufthansa announced that it cancelled 1,000 short and medium-haul flights scheduled for Wednesday, a move that stands to affect 140,000 travelers.

“For the past two years, right up until yesterday, Lufthansa has been approaching the Vereinigung Cockpit (VC) group collective labor agreement committee with constructive proposals, offers and concessions,” Lufthansa Group said in a statement. “In doing so, the company has made concrete proposals on every open collective labor agreement issue, with a view to working together with the VC to jointly ensure the future viability and competitiveness of the company as a whole and of Lufthansa German Airlines in particular. In addition, Lufthansa has also demonstrated a willingness to discuss issues with the VC Group collective labor agreement committee that extend far beyond the latter’s responsibility and authority.”

Lufthansa pilots have staged several short strikes over the past year in protest of plans by the airline to cut early retirement benefits. The airline’s pilots can now retire at age 55 and draw 60 percent of their salary until they turn 63, at which point they become eligible for state- and employer-sponsored retirement benefits. Under increasing competitive pressure from low-fare carriers and Gulf-based majors, Lufthansa proposed raising the early retirement age for new-hire pilots from 55 to 60. The sides remain in arbitration over the matter but talks reached a complete impasse last week.

“We would have liked to finally resume our CLA negotiations with the Vereinigung Cockpit instead of having to respond with this further escalation,” said Bettina Volkens, chief officer for corporate human resources and legal affairs at Deutsche Lufthansa. “I also appeal to our pilots to live up to their personal responsibilities. With the strike plans outlined by the VC for the time between now and the end of this year, the financial damage to our company would exceed 100,000 euros per pilot. It is high time we sat down and found a solution here.”