Category Archives: Austrian Airlines

Austrian Airlines to add six Airbus A320s, will phase out its DHC-8-402s

European Elections 2019: Austrian Airlines declares its commitment to Europe: “Austrian Airlines is also European”

Austrian Airlines has made this announcement in support of the European Elections:

• Austrian Airlines has displayed the EU flag on all aircraft since 1997
• The Austrian flag carrier employs about 7,000 people from 58 nations
• The network links Austria to 100 European destinations

Shortly before the European elections 2019, Austrian Airlines has declared its clear commitment to Europe. Austrian Airlines CEO Alexis von Hoensbroech puts it this way: “We are Austria’s flag carrier. At the same time, we have been displaying the EU flag on all our aircraft since the year 1997 out of conviction. Austrian Airlines is also European.”

In this way, Austrian Airlines joins many other European companies in actively promoting high voter turnout at the European elections. The elections for the European Parliament will take place in Austria this coming Sunday, May 26, 2019. “Austrian Airlines has profited enormously from Europe’s political as well as economic integration. Europe is a project of peace and prosperity. The success of this project is important for the future of all of us. Every vote cast in these elections is thus a vote cast to support this project”, von Hoensbroech adds.

Austrian Airlines employs a total of 7,083 people from 40 European and 18 non-European countries, and links 101 cities within Europe with each other. Austrian Airlines temporarily had the EU flag painted on the nose of an Airbus A320 with the aircraft registration OE-LBL in order to visibly display its commitment to Europe and the European Union.

Photo: Austrian Airlines.

Video:

Runway renewal at Salzburg Airport: Austrian Airlines expands railway offering between Salzburg Central Station and Vienna Airport

Salzway Airport will temporarily close until the end of May for runway work. During the closure Austrian Airlines is making alternate arrangements with this announcement:

The runway at Salzburg Airport will be renewed starting on April 24 and lasting until the end of May 2019.

All flight service to and from the airport will be suspended during this period.

For this reason, Austrian Airlines is offering expanded travel options by train between Salzburg’s Central Station and Vienna Airport. The existing AIRail offering in cooperation with the Austrian Federal Railways (ÖBB) will be increased tenfold from three to up to 30 daily train connections until one week after the shutdown of the runway.

Accordingly, a Railjet with an Austrian Airlines flight number linking Salzburg and Vienna will be available to passengers every hour between 5 a.m. and 8:30 p.m.

Austrian Airlines customers enjoy various advantages, for example a guaranteed connection, regardless of whether their journey continues by plane or train. This means that in the case of an unexpected delay of the train or flight, passengers will be automatically booked on an alternative connecting service if they do not reach their train or flight on time. Business Class passengers travel in first class on the train and are also given free access to the ÖBB lounge before departure.

Moreover, passengers can collect miles on AIRail route within the context of the Miles & More program. Finally, there is also a catering voucher, which can be used in the ÖBB dining car. Travel time between Salzburg Central Station and Vienna Airport amounts to 2 hours 49 minutes.

All photos by Austrian Airlines and Salzburg Airport.

Austrian Airlines to launch Montreal flights starting in 2019

Austrian Airlines has made this announcement:

Starting late April 2019, Austrian Airlines, Austria’s home carrier will introduce flights to

Montreal throughout the entire year i.e. daily in the summer flight schedule and five times per week in the winter season.

The Star Alliance and joint venture partner Air Canada will assume flights on the Vienna-Toronto route.

The flight connection between Vienna and Toronto will also be bookable as a codeshare flight via Austrian Airlines. Air Canada will begin year-round non-stop service on this route in late April 2019, onboard the Boeing 787-9 Dreamliner. These flights will operate daily in the summer and five times weekly during the winter season. Accordingly, Canada’s largest airline will operate the same number of flights on the Vienna-Toronto route and feature departure and arrival times comparable to Austrian Airlines up until now.

Montreal and Toronto in the 2019 summer flight schedule
The duration of the flight from Vienna to Montreal is about nine hours, to Toronto about ten hours.

Route                      Flight number       Flight days   Departure – Arrival (local times)
Vienna – Montreal   OS 73 (AC 6211)  daily            10:30 a.m. – 1:35 p.m.
Montreal – Vienna   OS 74 (AC 6212) daily            6:45 p.m. – 8:45 a.m. (next day)

Route                    Flight number        Flight days   Departure – Arrival (local times)
Vienna – Toronto   OS 8247 (AC 899) daily            10:40 a.m. – 1:30 p.m.
Toronto – Vienna   OS 8248 (AC 898) daily            6:25 p.m. – 8:30 a.m. (next day)

Austrian Airlines reports its 2018 financial results, gives 2019 outlook

• Expensive fuel: Adjusted EBIT down from EUR 93 million to EUR 83 million in 2018
• High demand: strong passenger growth
• Tough competition: CEO von Hoensbroech sees a challenging year 2019

Austrian Airlines, Austria’s flag carrier, generated an adjusted EBIT of EUR 83 million in the 2018 financial year, comprising a decline of eleven percent from the prior-year level. However, Austrian Airlines once again succeeded in setting a new passenger record. The airline transported 13.9 million passengers, up eight percent year-on-year. Revenue climbed to EUR 2.2 billion.

“We are pleased with the new all-time high in passenger volume. Despite competition from low-cost carriers, an increasing number of people are deciding to fly with Austrian Airlines. However, we are feeling the impact of competition on the earnings side. Moreover, the high jet fuel prices burden business results”, comments CFO Wolfgang Jani.

Business results in detail

After applying the rules contained in IFRS 15*, revenue fell mathematically by eight percent to EUR 2,178 million, as did total operating revenue, which also fell eight percent to EUR 2,255 million. However, adjusted for this effect, revenue and total operating revenue actually increased by five percent and four percent respectively. Operating expenditures declined by eight percent to EUR 2,172 million but rose five percent when adjusted for the effect of applying IFRS 15. This was largely attributable to jet fuel costs, which rose by 16% or a total of EUR 61 million to EUR 442 million. Accordingly, the “refueling bill” comprises one of the largest expense items, accounting for about 20 percent of total operating expenditures.

The adjusted earnings before interest and taxes (adjusted EBIT), the most important performance indicator in the Lufthansa Group, fell by eleven percent or EUR 10 million to EUR 83 million in 2018. As a result, the adjusted EBIT margin was down from 3.9 percent to 3.8 percent. Moreover, a special effect of EUR 40.5 million was reported in 2018, namely the changed accounting treatment for jet engine overhauls. Excluding this effect, the adjusted EBIT would have declined by 55 percent. Earnings before interest and taxes, which also includes book gains from sales of aircraft or aircraft parts, decreased by ten percent or EUR 10 million, from EUR 100 million in 2017 to EUR 90 million in 2018.

Route network: increased frequencies on long-haul and medium-haul flights

In terms of its route network, Austrian Airlines can point to a good track record with respect to the realignment of its long-haul destinations. As is publicly known, it terminated flight service in 2018 to long-haul destinations such as Colombo, Havana and Hong Kong which did not function very well, and increased frequencies on existing North America routes.

“This strategy seems to be working. The advance bookings for the summer of 2019 are looking very good”, emphasizes CEO von Hoensbroech. At the end of March, respectively end of April 2019, Tokyo will be included once again in the route network and the airline will also begin operating flights to the Canadian city of Montreal.

One million more passengers

The growth of the fleet and the improved product offering was also reflected in passenger volumes. In the period January to December 2018, Austrian Airlines transported 13.9 million passengers, which comprises a new passenger record once again since the airline was founded in 1957. One million more people flew with Austrian Airlines in 2018, a rise of eight percent. The flight offering in available seat kilometers (ASK) climbed by six percent. Nevertheless, the airline succeeded in more effectively marketing the expanded offering. Capacity utilization (passenger load factor) clearly improved to 79.3 percent from the prior-year level of 76.8 percent.

In 2018, Austrian Airlines operated a total of 150,963 flights using 83 aircraft, or an average of 414 flights per day. The regularity of operation was 98.0 percent, whereas the punctuality rate on arrival equaled 77.2 percent.

The total staff of the Austrian Airlines amounted to 7,083 employees as at the balance sheet date of December 31, 2018 (2017: 6,914 employees). The increase of 169 employees representing a rise of two percent is mainly related to the hiring of flight attendants.

Outlook 2019: A year of challenges

Austrian Airlines anticipates a challenging year 2019 due to strong competition from low-cost carriers at Vienna Airport and upcoming investments in aircraft, digitization of workplaces, devices and its product offering. “The #DriveTo25 strategy we presented will give us the necessary boost to earnings to enable us to make the necessary investments”, says Austrian Airlines CEO Alexis von Hoensbroech. “However, the strategy also simultaneously involves restructuring measures and investments. This will be accompanied by intensified competition in Vienna. For this reason, we expect a weaker year 2019.”

As announced in January 2019, Austrian Airlines plans to upgrade its medium-haul fleet with ten additional aircraft by the year 2021, investing a total of EUR 200 million. On balance, this will increase the airline’s offering in Vienna by more than ten percent. At the same time, Austrian Airlines will phase out its turboprop aircraft earlier than planned.

Top Copyright Photo: Austrian.com – my Austrian (Austrian Airlines) Airbus A321-111 OE-LBC (msn 581) ZRH (Rolf Wallner). Image: 927793.

Austrian aircraft slide show:

Lufthansa Group orders 40 Boeing 787-9 Dreamliners and Airbus A350-900 aircraft, will sell 6 A380s

Lufthansa Group is consistently forging ahead with the modernization of its long-haul fleet. In today’s meeting, based on the recommendation of the Executive Board, the Supervisory Board approved the purchase of a total of 40 state-of-the-art aircraft for the group’s airlines. The 20 Boeing 787-9 Dreamliners (above) and 20 additional Airbus A350-900 planes will primarily be replacing four-engine aircraft. The new planes will be delivered between late 2022 and 2027.

The order has a list-price investment volume of $12 billion USD. As is usual with such orders, Lufthansa Group has negotiated a significant price reduction. The parties have agreed not to disclose the actual purchase price.

“By replacing four-engine planes with new models, we are laying a sustainable foundation for our future in the long run. In addition to the cost-effectiveness of the A350 and B787, the significantly lower CO₂ emissions of this new generation of long-haul aircraft was also a decisive factor in our investment decision. Our responsibility for the environment is becoming more and more important as a criterion for our decisions,” says Carsten Spohr, CEO and Chairman of Lufthansa Group.

The decision regarding which airline will deploy the aircraft at which hub will be made at a later date.

The investment in new technology, efficiency and passenger comfort is a continuation of the ongoing fleet modernization of the group’s airlines. The arilines of the Lufthansa Group currently operate a long-haul fleet of 199 aircraft (as of December 2018), including twelve state-of-the-art Airbus A350-900 aircraft. Beginning in 2020, Lufthansa will be introducing the new Boeing 777-9.

Investment in modern, fuel-efficient and low-noise aircraft

With the Airbus A350-900, the Boeing 777-9 and the Boeing 787-9, Lufthansa Group will own the most fuel-efficient long-haul aircraft of their class in terms of kerosene consumption per passenger and 100 kilometers flown. This order highlights the company’s desire to invest in cutting-edge technology in the interest of the environment. On average, the new aircraft will only consume around 2.9 liters of kerosene per passenger and 100 kilometers flown. That is 25% below what is used by predecessor aircraft, which will likewise have a positive impact on the CO₂ footprint.

The Boeing 787-9 and Airbus A350-900 aircraft that have been ordered will primarily be replacing four-engine aircraft. By the middle of the next decade, the entire long-haul fleet will have been modernized. The possible fuel savings alone add up to 500,000 metric tons per year. This is equivalent to a CO₂ reduction of 1.5 million metric tons.

A consistent focus on cost

With the new, more economical aircraft, the operating cost compared to the earlier models will sink by around 20 percent. In addition to this, Lufthansa Group will be significantly reducing the diversification and complexity of its fleet over the next few years and taking seven aircraft types out of service, which will reduce cost and complexity for maintenance and the supply of replacement parts, among other things.

After the long-haul aircraft rollover, the company will be offering its customers one of the world’s most modern fleets. This will also involve a significant increase in comfort and reliability.

Sale of six Airbus A380 aircraft

In today’s session, the Lufthansa Group Executive Board also informed the Supervisory Board of the sale of six of its 14 Airbus A380 planes to Airbus. The aircraft will be leaving Lufthansa in 2022 and 2023. The parties have agreed not disclose the purchasing price. The transaction will not affect the group’s earnings performance.

Lufthansa continuously monitors the profitability of its world-wide route network. As a consequence, the group is reducing the size of its Airbus A380 fleet from 14 aircraft to eight for economic reasons. The structure of the network and the long-haul fleet, fundamentally optimized according to strategic aspects, will give the company more flexibility and at the same time increase its efficiency and competitiveness. This will of course also benefit Lufthansa’s customers.

Austrian Airlines to offer more flights to Paris, Amsterdam and Copenhagen this summer

Austrian Airlines has made this announcement:

Austrian Airlines will increase frequencies to other European destinations in the upcoming summer flight schedule in addition to the previously announced expansion of its offering primarily to Germany. It will offer twelve more weekly flights to Paris than in the summer flight schedule 2018. On balance, Austria’s home carrier will offer a total of 39 weekly flights to the “City of Love”.

One additional daily flight connection to Amsterdam will be offered, or seven more flights each week. Overall, Austrian Airlines will have 34 weekly flights to Amsterdam in its portfolio.

Travelers to Copenhagen can also be pleased with the addition of four weekly flight connections. Thus, Austrian Airlines will operate 31 flights per week on the Vienna-Copenhagen route. All the above-mentioned changes apply to flights starting on May 1, 2019.

Above Copyright Photo (all others by the airline): Austrian Airlines Airbus A320-216 OE-LXB (msn 3482) AMS (Ton Jochems). Image: 941835.

Austrian Airlines aircraft slide show: