Austrian Airlines (Vienna) is planning to add another long-range Boeing 777-200 ER aircraft to expand its international operations. The airline issued this statement:
At its meeting yesterday, the Supervisory Board of Lufthansa approved the Austrian Airlines Group the lease of an additional Boeing 777-200 ER amounting to about EUR 33 million. Austrian Airlines Group will lease the aircraft for a period of about eight years from an internationally renowned leasing company. The aircraft will be transferred to Austrian Airlines Group in spring next year. Before it is put into operation, it will be subject to a maintenance check in Vienna and equipped with the new long-haul cabin including the new modern Economy seats, the new in-flight entertainment system and the new Business Class seats which can be converted into completely flat beds. The new Boeing 777 is scheduled to take off on its first flight in the summer of 2014.
“The expansion of the airline’s long-haul offering is an integral part of the restructuring program launched in 2012“, says Austrian Airlines Chief Executive Officer Jaan Albrecht. “The long-haul market has growth potential, particularly destinations in Asia and North America. In this way we will secure our long-term competitiveness at the Vienna flight hub.”
At present the long-haul fleet of Austrian Airlines Group consists of ten wide-bodied aircraft, of which four are Boeing 777-200 aircraft and six are Boeing 767-300s. On the basis of the new Boeing 777, the Austrian Airlines Group long-haul fleet will be expanded to eleven aircraft. The most recent expansion of the long-haul fleet took place in 2007 when one Boeing 777 with the registration OE-LPD was added. The Boeing 777 is the world’s largest twinjet and has a capacity of over 300 passengers.
The airline is also upgrading its cabins on its long-hail aircraft and issued this statement:
After passing its test flight and subsequently receiving approval from the authorities, the last Boeing 777 to feature the all-new cabin, aircraft with the registration OE-LPB has been put into revenue service. This means the conversion of the Austrian Boeing 777 fleet is now complete.
A total of 1,232 new seats have been fitted in the four Boeing 777 aircraft to have been converted, 192 in Business Class and 1,040 in Economy Class. The new cabin on the Boeing 777 offers space for a total of 308 passengers. Sophisticated seat distribution allows four out of every five Business Class passengers direct access to the aisle.
The national carrier has now converted its entire Boeing 777 fleet, and two of its Boeing 767 aircraft. Some 1.1 million customers fly long-haul with Austrian Airlines every year, on 5,500 flights.
On the financial side, the Austrian Airlines Group reported an operating loss of $73.5 million for the first quarter. The group issued this statement:
The Austrian Airlines Group continued to make progress in its restructuring program, as shown by its financial performance indicators, in spite of a difficult first quarter related to the winter season. In spite of massive cost burdens to the amount of EUR seven million related to the airline ticket tax and fuel price increases, the country’s largest domestic airline succeeded in improving its operating result by EUR 11 million, or 16.4 percent from the prior-year quarter. Accordingly, Austrian Airlines posted an operating loss of minus EUR 56 million in the first quarter of 2013 (Q1 2012: minus EUR 67 million).
“Austrian Airlines had a tough opponent in the likes of Jack Frost. Winter-related flight cancellations and expensive de-icing unnecessarily burdened our efforts to get back into the black”, says Chief Executive Officer Jaan Albrecht. “We are in a substantially better position than in the previous year, though our performance is slightly below our expectations. Nevertheless, I am optimistic that we will already achieve a turnaround this year”, he adds.
Total operating revenues declined slightly in the first quarter of 2013, down 1.3 percent to EUR 458 million (Q1 2012: EUR 464 million). Operating expenditures also fell by 3.2 percent, from EUR 531 million to EUR 514 million, an indication that the cost reduction measures have begun to take hold. On balance, the airline posted an operating loss of minus EUR 56 million in the first three months of the year. There were no one-off effects in the first quarter.
The number of passengers carried by the Austrian Airlines Group decreased by 2.7 percent to approximately 2.3 million in the period January to March 2013, which can be attributed to the streamlined fleet. As a consequence of optimized fine-tuning, capacity utilization (= passenger load factor) improved by 3.3 percentage points to 74 percent.
The number of people employed by the Austrian Airlines Group totaled 6,265 employees as at the quarterly balance sheet date of March 31, 2013 (December 31, 2012: 6,236 employees). In 2012/13, about 150 people were hired for positions as flight attendants, ground crew and pilots.
Austrian Airlines launched a comprehensive restructuring program at the beginning of 2012 designed to enhance the airline’s competitiveness and profitability. The focal point of the initiative was the successful transfer of flight operations to its subsidiary Tyrolean Airways effective July 1, 2012. This step served to bundle flight operations, which in turn enabled the elimination of redundancies in flight administration. A corresponding program is currently being implemented in 2013. The harmonization of the fleet for European flights was successfully concluded at the end of March. Eleven Boeing 737 aircraft were taken out of flight operations, whereas seven Airbus 320 aircraft were added to the fleet.
In October 2012, Austrian Airlines also launched a product campaign on its long-haul flights. All Boeing 767 and 777 aircrafts will be equipped with new, modern cabins, new Economy Class seats, new horizontal full-flat Business Class seats and a new in-flight entertainment system by September 2013. Five aircraft have already been remodeled. Investments related to the redesigning of the interiors of all the aircraft will amount to more than EUR 90 million. Moreover, as of May 17, 2013, Austrian Airlines has added the Chicago route to its destinations. As a result, the number of flight connections to North America has been increased to 26. The forecast for bookings to Chicago show capacity utilization of over 80 percent.
Copyright Photo: Stephen Tornblom. Boeing 777-2Z9 ER OE-LPC (msn 29313) lands at New York (JFK).
Austrian Airlines (operated by Tyrolean Airways) (Vienna) retired its last Boeing 737 with the last flight being operated with Lauda Air (Vienna) Boeing 737-8Z9 OE-LNK (msn 28178). This also retires the Lauda brand although Lauda was officially merged into Austrian on July 1, 2012.
The company issued this statement:
The final Boeing 737 in the Tyrolean Airways fleet celebrated its departure on April 2. The aircraft, which bears the registration OE-LNK, is the last to bear the Lauda Air design. This means the fleet harmonization, during which eleven Boeing 737 aircraft have been replaced with seven Airbus A320 over the last seven months, is now complete. Tyrolean Airways now has a unified fleet on its medium-haul routes, consisting of 29 aircraft of the Airbus A320 fleet family. The company Lauda Air was merged with Austrian Airlines already last year. In the private travel segment, the power of the Austrian brand has been used to greater effect both nationally and internationally since the beginning of this year, with the launch of the ‘my Holiday’ product.
“This is an important milestone for our future competitiveness,” declared Austrian CEO Jaan Albrecht. “The fleet harmonization is an essential building block in the restructuring program of the Austrian Airlines Group.” Thanks to the unified fleet on medium-haul routes, Tyrolean Airways can enhance a number of essential synergies. Double costs for maintenance and spare parts are no longer necessary, for example, training for pilots can be standardised, and the aircraft can be deployed more productively in the network schedule. This all results in savings of around
17 million euros.
Airbus on medium-haul routes
There were a variety of different reasons for the decision to opt for Airbus on medium-haul during the fleet harmonization. The Austrian Airlines Group had twice as many Airbus A320 in its fleet as it did Boeing 737. This meant the phasing out of the Boeing 737 involved lower costs, because fewer pilots and technicians needed to be retrained.
In addition to this, the Austrian Airlines Group already had larger sub-fleets within the Airbus A320 fleet, which could be operated more efficiently than the Boeing 737 sub-fleets. As well as this, the Austrian Airlines Group can benefit more from synergies within the Lufthansa Group by using the A320 on its medium-haul routes.
Dates, facts and the history of the Boeing 737 in the Austrian Airlines Group The first Boeing 737-200, registration OE-ILE, took to the air for Lauda Air in the autumn on 1985. In the years that followed, Lauda Air incorporated a succession of Boeing 737 aircraft into its fleet, but each in different versions. After the takeover of Lauda Air, Austrian Airlines had a total of eleven Boeing 737 “Next Generation” and one Boeing 737-400 “Classic” in its fleet. The final Boeing 737-400 “Classic” was phased out of the fleet in 2004.
The Boeing 737 was mainly used to carry charter traffic at Lauda Air and Austrian. Since the spring of 2010, it has also been used on scheduled routes of Austrian Airlines. To make this possible, the Boeing 737 was repainted in the Austrian colors. Just one Boeing 737-800, bearing the registration OE-LNK, continued to fly under the Lauda Air colors, to enable the company to retain its AOC, or “Air Operator Certificate”.
The Boeing 737 “Next Generation” used at Lauda Air and Austrian Airlines flew over 300,000 flight hours in total between 1998 and 2013. The Boeing 737 was used for around 8 flight hours every day in the Austrian Airlines Group. That corresponds to 4.5 landings a day.
Before the fleet harmonization, the Austrian Airlines Group had seven Boeing 737-800s, two Boeing 737-600s and two Boeing 737-700s in its fleet.
Overview of the fleet of the Austrian Airlines Group :
The Austrian Airlines Group currently has 74 aircraft in its operative fleet (all except one operated by Tyrolean):
4 Boeing 777-200 (one operated by Austrian)
6 Boeing 767-300
• Short- and medium-haul:
6 Airbus A321
16 Airbus A320
7 Airbus A319
14 Fokker 100
9 Fokker 70
Copyright Photo: Andi Hiltl. Pictured at Zurich, Boeing 737-8Z9 WL OE-LNK (msn 28178) wore the Lauda colors until the end.
Austrian Airlines to concentrate all Tyrolean Airways administration functions in Vienna, 100 jobs to be cut
Austrian Airlines (Vienna) is making further changes at its lower-cost Tyrolean Airways (Innsubruck) subsidiary. All Austrian Airlines aircraft, except one aircraft, are now operated by Tyrolean in the Austrian brand since July 1, 2012. Boeing 777-2Z9 OE-LPB was kept on the Austrian certificate to maintain Austrian as an operating airline.
All Tyrolean aircraft maintenance and the call center functions will remain in Innsbruck. However all administrative functions will now be centered in Vienna. All crew operations and traffic control will also be concentrated in Vienna. This will result in the loss of 100 positions.
Austrian expects to turn to profitability this year.
Read the full report (in German): CLICK HERE
Copyright Photo: Michael B. Ing. The only true Austrian Airlines-operated aircraft, this former Lauda Air Boeing 777-2Z9 ER OE-LPB (msn 28699), arrives at Bangkok.
Austrian Airlines (Vienna) has outlined it restructuring plans which will be fully implemented in 2013 including moving all operational administration to Innsbruck under Tyrolean Airways which operating all Austrian aircraft (except one). 150 administrative jobs will also be eliminated. Struggling Austrian Airlines will not ask its parent Lufthansa for any additional money, after receiving $119 million to upgrade the fleet according to a report by Reuters. The company issued this statement:
Austrian Airlines Group has initiated a further step in the restructuring program announced in spring. This step will eliminate redundancies in its organization. These were identified through the conducting during the second half of 2012 of analyses of the operating procedures employed in the flight operations of Tyrolean Airways, in technical processes and in administrative departments. The result is potential savings somewhat greater than €10 million. 150 administrative positions out of the Group’s 6,320 employees will be cut.
Gaudenz Ambühl, managing director of Tyrolean Airways, states: “This is a highly painful move. However, it is one that our restructuring makes inevitable. This makes it possible for us to realize all of the savings in costs enabled by the operational transition. These measures have been widely expected. They will now eliminate the redundancies found in operations.”
The following measures were resolved upon:
- Flight control operations are currently managed from two centers. These operations will all be handled by the Vienna hub.
- The headquarters of all flight administration operations will be set up in Innsbruck. This essentially involves the establishment of a Shared Services Center in the city, to which nine departments will be assigned.
- The planning of personnel, resources and rotation will be concentrated in Innsbruck.
Redundant operations will also be eliminated at Austrian Airlines. The “Part M” responsibilities forming part of technical maintenance – with these including the engineering, the planning and the management – will be grouped in Tyrolean. Tyrolean is the holder of the official AOC (Air Operator Certificate). The technical maintenance of the fleets will continue to be undertaken at a variety of stations. Innsbruck will handle the maintenance of the Bombardier Dash 8 aircraft; Vienna, of the Fokker, Airbus, and Boeing airplanes, and Bratislava, the overhauling of the Fokker fleet.
Jaan Albrecht, CEO of Austrian Airlines says: “The difficult conditions prevailing on markets do not leave us any choice. We have to increase our organization’s efficiency and to eliminate redundancies in the entire Group. This especially applies to duplications in our organizations, of which we have been aware for a number of years.”
All measures will be implemented in 2013. The grouping of operations at a set of centers will result in a reduction of up to 150 jobs. These will be in Austrian Airlines’ administrative operations. The Austrian Airlines Group has resolved to set up a social plan for the employees affected. Details of it are still being worked out with the works council.
Copyright Photo: Keith Burton. Boeing 737-8Z9 OE-LNS (msn 34262) departing London (Heathrow) now carries “Operated by Tyrolean” sub-titles.
GE Capital Aviation Services Limited (GECAS), the commercial aircraft leasing and financing arm of GE, announced it will lease two Airbus A320-200 aircraft to a new customer, Tyrolean Airways (Innsbruck).
Tyrolean Airways is now responsible for operating all Austrian Airlines flights. Austrian Airlines (Vienna) has become virtually a marketing name rather than an operating airline. Only one aircraft for legal reasons has been retained on the Austrian certificate. Otherwise all other Austrian aircraft and personnel have been shifted to lower-cost Tyrolean. Tyrolean is also dropping the Austrian arrow name.
The aircraft are scheduled for delivery in early 2013 and will expand the existing fleet to around 80 aircraft.
Copyright Photo: Rolf Wallner. Austrian Airbus A320-214 OE-LBO (msn 776) taxies at Zurich.
Austrian Airlines moves all aircraft (except one) to Tyrolean Airways, Austrian Arrows name being retired
Austrian Airlines (Vienna) as of midnight July 1, 2012 moved all flight operations to lower-cost subsidiary Tyrolean Airways (Innsbruck), including all of the long-range flights. One former Lauda Air Boeing 777-2Z9 (OE-LPB) was kept on the Austrian certificate to maintain its official “airline” status.
The company issued this statement:
“As of July 1, 2012, there will be joint flight operations under the unified Austrian brand name.
The objective: achieving competitive framework conditions enabling profitable operations
All of the flight operations of the Austrian Airlines Group, which has a fleet of some 80 aircraft, are now bundled at its 100% subsidiary Tyrolean Airways. As of July 1, 2012 Tyrolean is also operating the long-distance fleet.
For customers, the so-called “operational transition” will not result in any essential changes. The “Austrian” brand will remain on all aircraft. The flight numbers will also bear the “OS” airline code, as was the case in the past. However, travel agencies and tickets will provide notification on the identity of the operator of the aircraft undertaking all medium and long-distance flights based on the supplementary annotations “VO” or “operated by Tyrolean”. The supplementary brand “arrows” found on Tyrolean Airway aircraft will successively be removed by the end of 2012.
What has happened in detail:
• Aircraft fleet: 22 airplanes of the A320 family, 7 Boeing 737s, 6 Boeing 767s and 3 Boeing 777s changed their operators within the Austrian Airlines Group on midnight of July 1, 2012. One Boeing 777, OE-LPB, will stay with Austrian Airlines. This is due to international traffic laws. The outplacement of the fleet of the seven Boeing 737 medium-range airplanes still on hand and the “in-placement” of the seven Airbus A320s forms part of the harmonization of the fleet of medium-range aircraft which is being continued.
• Organization: The organization of the entire flight operations is to be bundled in Tyrolean Airways. Austrian Airlines retains such key responsibilities as station management, the technical department, sales in Austria and abroad, as well as such management departments as network planning, personnel, finances and marketing. There will be no changes in ownership. “Tyrolean Airways Tiroler Luftfahrt GmbH” remains a 100% subsidiary of Austrian Airlines AG.
• Austrian Airlines retains its operation authorization, and remains the user of traffic rights. The flights will be performed under the OS flight numbers. However, they will be “operated by Tyrolean”. Austrian Airlines serves some 50 countries from Vienna. No further permits or licenses need to be secured in a large number of countries. This is due to the fact, amongst other reasons, because prevailing legal regulations, especially in the European Union, generally permit this. For countries outside Europe, the requisite approvals have been secured.
• Personnel: some 460 pilots and 1,500 flight attendants are changing their employer within the Group. They will be transferred from Austrian Airlines to Tyrolean Airways. 110 pilots and 214 flight attendants have, in the final analysis, left the company. As a whole, Austrian has 900 pilots and 2,000 flight attendants, including the Tyrolean employees. The employees will not experience any changes in working environments and remuneration. Tyrolean currently has a work force of about 1,500 employees, which will increase to 3,500 employees as a consequence of the operational transition. The Austrian Airlines Group employs approximately 6,700 people.
• Flight plan: to compensate for the departure of the pilots, a series of temporary measures were implemented for the summer flight plan:
• Retraining: The removal of 4 Boeing 737 airplanes from the fleet leaves 31 Boeing 737 pilots available. They have already been trained to fly Airbus A320 airplanes. The cessation of part-time work at Tyrolean has freed 36 Tyrolean co-pilots for other duties. These pilots, who were trained to fly Fokkers, have already been retrained to handle Airbus aircraft.
• Leasing of airplanes: Austrian Airlines will temporarily lease five airplanes from Lufthansa, Augsburg Airways, Contact Air und Welcome Air (wet leases). Lufthansa will provide a 139-seat Boeing 737-300 to fly the OS routes between Vienna and Düsseldorf and between Vienna and Rome in July and August. Lufthansa will assume responsibility for Vienna-Dubai-Vienna in July by flying a 241-seat Airbus 340-300. In a further move, the Salzburg-Frankfurt route, which has been served by Austrian acting under a commission from Lufthansa, will be operated by Lufthansa itself using a Boeing 737-300 for the first two weeks in July. Contact Air will fly a Fokker 100 seating 100 passengers to two of the four daily OS routes between Vienna-Zurich-Vienna and Vienna-Varna-Vienna. This aircraft would have originally been flown as a “wet lease” under a commission of Austrian’s associate SWISS. Augsburg Airways, which is part of the Lufthansa Group, will temporarily assume responsibility for one of the four flights serving the route between Vienna-Munich-Vienna and for two of the total of three flights on the Vienna-Stockholm-Vienna route during the period July 15 – August 31. 2012. Welcome Air will use a further a 31-seat Dornier 328 to carry out flights between Vienna and Klagenfurt, Salzburg and Prague, in addition to the existing four of the five flights between Linz und Vienna. Passengers will receive Austrian’s on-board services. Austrian will make use of the longer on-ground times by having Austrian Technik conduct maintenance work.
• Freelancers: Some of those pilots that have made use of the privileged termination of employment will be provided with work on a temporary and case-by-case basis.
The reorganization is based on the operational transition is a key component of the EUR 220 million restructuring program presented in January 2012. The objective of the program is the modernization of the structures of Austrian Airlines, so as to bring and sustainably keep Austria’s largest domestic airline in the profit zone.”
Bottom line: Austrian Airlines (under orders from parent Lufthansa) needed to reduce its cost structure and this dramatic move will probably accomplish this goal.
Top Copyright Photo: Michael B. Ing. Sister-ship Boeing 777-2Z9 ER OE-LPC (msn 29313) is now being operated for Austrian Airlines by Tyrolean Airways.
Bottom Copyright Photo: Gerd Beilfuss. Boeing 777-2Z9 OE-LPB (msn 28699) when it was with Lauda Air.
Austrian Airlines (Vienna) has reversed itself again and will transfer all flight operations, including around 80 aircraft and 2,100 employees, to its Tyrolean Airways (Austrian Arrows) (Innsbruck) subsidiary on July 1 after failing to reach an agreement with its unions according to this report by Bloomberg. Tyrolean pays only about 75 percent of the wage rate of the higher cost mainline Austrian.
Read the full report: CLICK HERE
Copyright Photo: Andi Hiltl.
Austrian Slide Show: CLICK HERE
Austrian Arrows-Tyrolean Airways Slide Show: CLICK HERE
Austrian Airlines (Vienna) has reached a tentative agreement with its unions leaders about a new contract that if approved, will lower the flag carrier’s labor costs. If approved by the pilots and cabin staff members, the new agreement will void the company’s plan to transfer 2,100 flight crew employees to lower-cost Tyrolean Airways (Innsbruck) according to this article by Bloomberg.
Read the full article: CLICK HERE
Copyright Photo: Ken Petersen.
Austrian Slide Show: CLICK HERE
Austrian Airlines moves its flight operations into lower-cost Tyrolean Airways, pilots will have to work for less
Austrian Airlines’ (Vienna) board of directors has approved a plan to move Austrian’s flight operations to lower cost Tyrolean Airways (Innsbruck). Austrian issued the following statement:
“The Supervisory Board of Austrian Airlines has concluded the planned transfer of the company’s flight operations into its subsidiary, Tyrolean Airways. For legal reasons, the earliest possible date that this operation transfer can take place is July 1, 2012. With this decision the 220 million euro restructuring program has been formally sealed. The aim of the program was to bring the country’s largest domestic airline back into profit.
For customers nothing will change as a result of the transfer of flight operations: Austrian Airlines will remain Austrian Airlines – with a fleet of 77 aircraft serving 130 destinations around the world. For the employees of Austrian Airlines flight operations, who are 600 pilots and 1,500 flight attendants, nothing will change in terms of the workplace or actual salary. This is because, the savings should be achieved by means of level salary increases.
One flight operations for Austrian Airlines and Tyrolean:
The next step is to integrate the Austrian flight operations into Tyrolean. In March, a project organization was started with experts and managers of both companies. The aim of the working groups is to organize joint flight operations without a duplication of efforts by the end of the year. Both locations, Vienna and Innsbruck, are part of the future concept in all cases.
An overview of the work program:
• Staff: In the work package “Modernization of Collective Agreements” an agreement was found with the personnel workers´council of the Ground staff and the GPA (Union for private employees). Part of this are a zero growth wage agreement for 2013 and an agreement about the exit from the current pension fund model. Intensive negotiations with the personnel workers´council were lasting until the very last minute. Unfortunately no agreement has been reached. Therefore the transfer of flight operations into the subsidiary Tyrolean will now be realized. With the cost level of Tyrolean Airways, Austrian Airlines has a forward-looking and competitive basis for growth.
• Route network and fleet harmonization: A new flight schedule with a strategic orientation to our domestic market of Austria and strong eastern markets has been developed. The removal from the fleet of eleven medium-haul aircraft of the type Boeing 737 and the acquisition of seven Airbus A320 is underway. Essential here is that suitable aircraft types are found that allow us to carry out the necessary technical requirements, such as adjustments to the engine or cabin, as cost-effectively as possible. The retraining of pilots began back in March. This is being flexibly adjusted, depending upon the time of the successive fleet harmonisation. The “retraining pool” includes pilots of the Boeing 737 and copilots of the Fokker fleet.
• Location: An agreement has been signed with Vienna Airport to secure the common future of the two organizations, and to strengthen the development of transfer- and long-haul traffic. Overall, this should serve to expand the Vienna hub and the long-haul product being offered at the location. A good basis for doing this has been created with the new Austrian Star Alliance Terminal, which will go into operation in June 2012. In the field of handling, too, savings potentials have been identified, and the framework conditions for a long-term agreement have been defined.
• Costs and revenues: Many of the business partners and suppliers want to participate in the future concept of Austrian Airlines and support it in adapting the conditions. With an extension of contracts and cheaper conditions with more than 60 suppliers it was possible to save substantial amounts, running into millions. The revenue side includes the expansion of corporate customer business, through cooperations with Lufthansa Group and partners within Star Alliance.”
Copyright Photo: Rolf Wallner. The Boeing 737s will be phased out.
Austrian Slide Show: CLICK HERE
Austrian Airlines (Vienna) will decide on April 19 at its board meeting whether it will transfer all mainline operations to the lower cost Tyrolean Airways (Austrian Arrows) (Innsbruck) subsidiary according to this report by Airliners.de. The flag carrier is currently at odds with its higher cost pilots who do not want to fly at the same rates as the Tyrolean pilots. Parent Lufthansa is pushing Austrian to take drastic actions to reduce costs or it will consider selling its shares in the airline. Austrian is also considering a new name for Tyrolean Airways.
Read the full report (in German): CLICK HERE
Top Copyright Photo: TMK Photography. Long gone, this special “Wiener (Vienna) Philharmoniker” livery taxies past the camera at Toronto.
Austrian Slide Show: CLICK HERE
Austrian Arrows-Tyrolean Slide Show: CLICK HERE
Bottom Copyright Photo: Paul Bannwarth. Tyrolean Airways operates under the Austrian brand as Austrian Arrows.
Austrian Airlines (Vienna) is facing a deadline by its parent Lufthansa (Frankfurt) to reduce its personnel costs. Lufthansa has stated it will not inject anymore capital into AUA until the austerity program is installed. Discussions are currently underway with the various labor groups to cut salaries. Due to Lufthansa’s uncertainty for future support of the Austrian flag carrier, a possible bankruptcy or resale is becoming a possibility again.
Read the full story from the Austrian Independent: CLICK HERE
Copyright Photo: Rolf Wallner.
Austrian Slide Show: CLICK HERE
Austrian Airlines Boeing 737-8Z9 WL OE-LNQ (msn 30421) ZRH (Rolf Wallner), originally uploaded by Airliners Gallery.
Austrian Airlines’ (Vienna) new CEO Jaan Albrecht said the company would reduce staff and cut some routes in the hope it can cut around $254 million in costs this year as it hopes to break even or make a profit in 2012.
Austrian had an operating loss of around $83 million in 2010 and is likely to report a similar loss for 2011 according to this report by Reuters.
The company also wants to phase out its former Lauda Air Boeing 737 fleet and concentrate on the Airbus A319 and A320 for its medium haul routes. Parent Lufthansa has told the carrier it will support this fleet adjustment if the loss-making carrier will make drastic cuts in costs.
Read the full article: CLICK HERE
Copyright Photo: Rolf Wallner
Austrian Slide Show: CLICK HERE
Austrian Airlines (Vienna) is dropping service from Vienna to both Helsinki and Milan (Linate) on November 15 per Airline Route. Both routes are operated by Austrian Arrows’ (Tyrolean Airways) Fokker jets.
Austrian Slide Show: CLICK HERE
Copyright Photo: Arnd Wolf. Please click on the photo for additional information on this logojet.
Austrian Airlines Group (Vienna) reported a 2011 first-half operating loss of $90 million.
Read the full report from Austrian: CLICK HERE
In other news, Austrian Airlines has completed the conversion of its A320 aircraft to the new interior furnishings. As a result, the 21 aircraft of the A320 family now feature new, modern cabin fittings. By September 2011, Austrian Airlines will also refurbish its 11 Boeing 737 aircraft. That means the 32 aircraft of the medium-haul fleet of Austrian Airlines will be operational in the new interior design and fitted with the new, modern leather seats.
Copyright Photo: Rolf Wallner. Please click on the photo for the aircraft information.
Austrian Airlines (Vienna) has painted its first Boeing 737-800 in the full 2003 livery.
Copyright Photo: Manuel Ladinig. Ex-Lauda Air Boeing OE-LNS (msn 34262) departs from runway 26 at beautiful Innsbruck bound for Copenhagen.
Lufthansa (Frankfurt) according to media reports is planning to squeeze out the remaining minority shareholders of the Austrian Airlines Group.
Lufthansa (Frankfurt) yesterday (August 28) was given EU Commission approval to acquire the Austrian Airlines Group. Austrian Airlines (Vienna), Lauda Air and Tyrolean Airways (Austrian Arrows) will be integrated into the Lufthansa Group in September.
Austrian Airlines (Vienna) has announced it can no longer efficiently operate its 50-seat aircraft operated by Austrian Arrows (marketed as Austrian arrows) (Tyrolean Airways dba) (Innsbruck and Vienna). As a result it will begin phasing out the CRJ200 fleet at the beginning of the 2010 summer season. The company will also reduce its DHC-8-300 fleet and partly replace them with larger DHC-8-400s. In total 14 aircraft will be removed from the fleet of 55 aircraft. An unspecified number of jobs will also be eliminated at the subsidiary.
Austrian Airlines (Vienna) is planning to eliminate 1,000 jobs by mid 2010 as it fights off insolvency. The flag carrier is still hopeful its takeover by Lufthansa will be approved by the EC.
Austrian Airlines (Vienna) yesterday (March 27) received its first Boeing 767-300 enhanced with Aviation Partners Boeing Blended Winglets. 767-3Z9 ER OE-LAE (msn 30383) arrived at the Vienna base.
Lufthansa (Frankfurt) has made a public offer to the shareholders of Austrian Airlines (Vienna) to acquire the shares of the airline via the OLH holding company. LH is offering EUR 4.49 for each share of Austrian stock. This bid price is based on the average price of the stock over the past six months. The offer expires on May 11, 2009. The goal is to bring Austrian into the Lufthansa Group (like Swiss).