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Endangered positions: Austrian Airlines plans a drastic austerity program



The austerity measures initiated by the Austrian subsidiary Lufthansa are insufficient. That is why Austrian Airlines must save three times as much as previously planned. Up to 500 jobs are at risk.

Contest continues. Wizz Air wants to expand its base in Vienna. Level has announced despite starting problems to stay in the Austrian capital. And Lauda has set itself the goal of surpassing local hero Austrian Airlines for the next five years, even though it is currently writing major losses.

Austrian Airlines uses this "hyper-competition", as CEO Alexis von Hoensbroech calls it. It was just for everyone very, very difficult, said the manager in June in an interview with aeroTELEGRAPH. "Our result will be under great pressure." Meanwhile, it is apparently so under pressure that the Austrian subsidiary Lufthansa has slipped into red as the newspaper writes the press.

1
00 instead of just 30 million

Das The austerity programs that the management has worked with since January will therefore be much harder than expected. By "simplifying, digitizing and avoiding duplication", one would save 20 to 30 million a year, the Austrian subsidiary Lufthansa announced in January. Now the target is obviously 100 million, as the press writes. Half of this will be saved from 2020 on "Measures for personnel and material costs". Up to 500 jobs are obviously in danger.

Austrian Airlines has already initiated a lot. Thus, the airline has purchased new aircraft to meet the offer from new low-cost competitors. In addition, the closure of the 18 Bombardier Dash 8-400 turboprops began, which should be completed by 2021. The crew bases in Altenrhein, Graz, Innsbruck, Klagenfurt, Linz and Salzburg are relocated to Vienna and AUA is fully concentrated to the capital.

Hardly any new long-haul aircraft without austerity programs

Austrian Airlines must generate an operating profit of EUR 100 million in order to carry its investments. This is the specification for Lufthansa. The airline has never achieved this, in 2017 they received € 93 million in 2018, 2018. The austerity program, which should be presented next week, is therefore necessary for Hoensbroech and must succeed.

If the target goes too far into the future, Austrian Airlines cannot renew its long-haul fleet. "However, we must be able to prove to the Lufthansa Board that we will be able to provide at least comparable returns with new aircraft at other locations in the Group, such as Munich or Zurich. It was difficult so far," he said of Hoensbroech in June. And since then it has become even more difficult.


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