Lufthansa budget carrier Eurowings does not not see its growth plans in jeopardy, management said on Tuesday after pilots' union VC unexpectedly rejected a labour deal.

"We don't think our growth plans will be restricted or hindered at all," Eurowings operations director Michael Knitter told journalists on Tuesday.

The deal rejected by the union would have allowed the airline to take on pilots at its Eurowings unit based in Germany, which has a full collective labour agreement.

Instead, Eurowings will employ staff via its Austrian unit, Eurowings Europe. Staff at Eurowings Europe based in Germany will be on contracts with the same conditions as those at Eurowings Germany, only without being part of a collective labour agreement.

Eurowings has not yet agreed a collective labour agreement with Austrian unions for Eurowings Europe.