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UPDATE 1-Informal talks between Lufthansa, pilots collapse

* Pilots' union VC says informal talks end with no agreement

* Formal talks collapsed last month

* End of talks risks derailing goal of agreement by end-2016

* Lufthansa says offers VC to resume talks (Adds union spokesman comment, Lufthansa comment, background)

FRANKFURT/BERLIN, Sept 16 German pilots' union Vereinigung Cockpit (VC) said that informal talks with Lufthansa had ended with no agreement, dashing hopes that talks on a wide-ranging pay deal could be resumed quickly.

"There will be no further talks of this form," a spokesman for VC told Reuters on Friday.

Lufthansa has been in talks with the pilots union for four years in a long-running dispute that has seen more than a dozen strikes hit one of Europe's largest carriers.

The airline is trying to cut costs at its main brand in Germany in order to better compete with low-cost rivals in Europe and fast-growing long-haul carriers such as Emirates and Turkish Airlines.

It has already agreed wide-ranging pay and pension deals with cabin crew and ground staff.

Formal talks with the VC union collapsed last month, and an end to informal talks risks derailing Lufthansa's goal of reaching an agreement with its pilots by the end of the year. (Reporting by Maria Sheahan and Klaus Lauer; editing by Jason Neely)

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