Tag Archives: Austrian Airlines Group

Austrian Airlines wants labor peace, proposes a new collective agreement offer, opens up the possibility of merging Austrian with subsidiary Tyrolean Airways

Austrian Airlines (Vienna) and its subsidiary Tyrolean Airways (Innsbruck) have presented to its employees a “framework plan for a collective wage agreement applying to flight personnel throughout the entire Austrian Airlines Group. Following the failed negotiations in 2012, the entire flight operations of Austrian Airlines were transferred to its subsidiary Tyrolean Airways, encompassing about 1,900 employees and all the aircraft. Now the company is making employees a new offer i.e. a new Austrian Airlines Group collective wage agreement as a means of increasing planning certainty and creating the basis for future decisions. Negotiations designed to work out specific details should be concluded by May 31, 2014. This collective wage agreement opens up the possibility to merge Tyrolean Airways and Austrian Airlines in the future.”

The company continued:

“The contents of the offer are based on ten months of joint negotiations with the Works Council, trade union and Austrian Federal Economic Chamber. The new agreement acts as a bridgehead from the past aiming to lead Austrian Airlines into the future. Our employees wish for an agreement and a clear perspective moving forward. They also desire to return to Austrian Airlines. We want to make this possible”, says Austrian Airlines CEO Jaan Albrecht.

The cornerstones of the new Group collective wage agreement:

The cornerstones of the new Group collective wage agreement are new flight duty rules, a new salary scale, a profit sharing scheme based on the net profit, a revised pension fund model as well as a new career model for the cabin and cockpit staff.

The current flight duty rules are based on the former collective bargaining agreement applying to Tyrolean Airlines. The new stipulations more effectively takes into consideration the demands involved in operating a long-haul fleet. In contrast to the rejected negotiated settlement concluded in 2012, the salaries of the senior staff members formerly with Austrian Airlines will not be reduced but will stay frozen at their current status until the new salary scale catches up to this level. A profit sharing scheme for employees based on the company’s net profit is also a new component of the agreement. Austrian Airlines has been operating profitably again since 2013 and will enable its employees to participate in its business success.

Another key feature of the new collective wage agreement is a revised pension fund model. Partial payments will be offered to those employees who were previously covered by the Austrian Airlines company pension plan. Depending on the length of service and the respective position, this ranges from about EUR 15,000 for flight attendants to EUR 305,000 for flight captains. A new career model for the cabin crew and cockpit staff, which also facilitates the transfer between the various staff groups, is also part of the offering.

“The most difficult task was developing a new career model. Other airlines have failed precisely for this reason”, states Klaus Froese, Managing Director of Tyrolean Airways. “The centerpiece of our model is a transparent and fair allocation formula for pilots of the regional fleet and pilots of larger types of aircraft to be appointed to vacant plane captain jobs”, he adds.

Stability and planning certainty for employees and the company:

“We want to offer our employees an improved basis for their own personal career planning. I believe that this package of measures provides a good opportunity for this. Today I have asked the employees to authorize their representatives to carry out negotiations on this”, Froese continues.

Last week the negotiating team presented the principal features of the new collective wage agreement to the Works Council for flight and cabin crew (Betriebsrat Bord) of Tyrolean Airways, the Austrian Federal Economic Chamber and the trade union. Now negotiations are to be conducted on specific details of the agreement provided that the Works Council is willing to do so. “I think that we have reached a balanced agreement as the basis for negotiations. Now it is all about getting down to specifics”, Froese says. “However, we have to come to a conclusion after ten months of negotiations. The employees want a solution to be reached, and the company must be able to plan ahead.”

If an agreement can be reached with the Works Council, this would mean much more to the employees than just working in accordance with a collective wage agreement. A collective agreement for the entire Austrian Airlines Group would serve as the basis for a merger of Tyrolean Airways and Austrian Airlines. For the customers, the bottom line is that there would only be one brand. “Flown by Austrian, operated by Austrian“, is the way Froese describes it.

Basis for development of the fleet:

“The restructuring measures implemented over the past few years have put Austrian Airlines in a better financial position. We are once again operating profitably and want to take the next steps into the future. We have Lufthansa’s support for this”, explains Austrian Airlines CEO Jaan Albrecht.

“This year Austrian Airlines will make a forward-looking decision and move ahead with ordering a successor model to its fleet of Fokker aircraft. However, such a significant investment decision cannot be made without a consensus being reached on a collective wage agreement”, Albrecht continues.

At the present time the Austrian Airlines Group has a work force of about 6,300 employees, of which about 3,100 employees comprise the cockpit and cabin staff. A new collective agreement with the ground staff was concluded last year with the help of the trade union and the Works Council.


Copyright Photo: Ken Petersen/AirlinersGallery.com. Tyrolean Airways now operates all Austrian Airlines-titled aircraft except one Boeing 777-200 which Austrian officially maintains on its AOC to keep it active. It is very challenging for both Austrian Airlines and its employees to operate an international airline on a regional airline contract. Operated by Tyrolean Airways-employed flight crews, Boeing 777-2B8 ER OE-LPD (msn 35960) completes its final approach to the runway at John F. Kennedy International Airport (JFK) in New York.

Austrian Airlines: AG Slide Show

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 to decide to shift operations to lower cost Tyrolean Airways on April 19

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 Group reports a $90 million first half operating loss

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.

Lufthansa to squeeze out AUA shareholders

Lufthansa (Frankfurt) according to media reports is planning to squeeze out the remaining minority shareholders of the Austrian Airlines Group.

News link:


Lufthansa receives final approval for Austrian

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.

Press release: