Lufthansa talks with UFO union collapsed - source

FRANKFURT Aug 28 (Reuters) - Talks between Germany's leading airline Lufthansa and a labour union representing cabin crew have collapsed, a person close to union UFO said on Tuesday.

UFO, which represents 18,000 Lufthansa flight attendants, declined to comment. Lufthansa was not available for comment.

UFO has said it will call for strikes if it failed to come to an agreement on pay to end a 13-month dispute with Lufthansa and was due to hold a news conference at 0900 GMT.

The move came as Lufthansa cuts 3,500 jobs - about 3 percent of its global workforce of 117,000 - and freezes investment to boost profit squeezed by soaring fuel prices and competition from low-cost and Middle East carriers.

Lufthansa has also shifted contracts of pilots and flight attendants at carrier Austrian Airlines to a lower-cost subsidiary and boosted cooperation between its main Lufthansa brand and low-cost carrier Germanwings. (Reporting by Peter Maushagen; Writing by Maria Sheahan; Editing by Dan Lalor)