Austrian Airlines
Join Date: Aug 2001
Location: Stuck in the middle...
Posts: 1,638
Likes: 0
Received 1 Like
on
1 Post
Indeed it's official - no more OS in YSSY or YMML from March. This quote from the Austrian corporate website, quoting the CEO:
"Qualitative growth in our network, particularly against the background of the high kerosene prices, demands consistent optimisation of the route portfolio, which leads to the suspension of individual, and consequently low-yield, routes. Subject to these points of view, we have decided to suspend our Australian routes to Sydney and Melbourne from end-March 2007. We are currently looking into alternative long-haul destinations that correspond to our strategic orientation and provide adequate contributions to our overall European route network."
"Qualitative growth in our network, particularly against the background of the high kerosene prices, demands consistent optimisation of the route portfolio, which leads to the suspension of individual, and consequently low-yield, routes. Subject to these points of view, we have decided to suspend our Australian routes to Sydney and Melbourne from end-March 2007. We are currently looking into alternative long-haul destinations that correspond to our strategic orientation and provide adequate contributions to our overall European route network."
Last edited by Taildragger67; 25th Jul 2006 at 10:49.
Join Date: May 2000
Location: Austria
Posts: 30
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by flash8
Niki is not only a great business man, but a genius. Bring him back.
Located in Canada You might not be up-to-date about the facts WHY and HOW Niki the Genius escaped from bankruptcy twice - only through his connections, bonus of his triple-Formula One Championship titles. Austrian is still fighting hard to cope with the debts it had to take over from Lauda due to political reasons (Nikis friend Mr. Streicher, former Ministry of transport being the Head of the Board of Supervisors at Austrian Airlines..), his ordering of 4 B777 when not needed is just one part of the big picture.
The route to Australia WAS successful years ago, but not anymore.
BTW, the brand "Lauda Air" will be history within one year by a probability of 95%.
Join Date: Jul 2005
Location: Ask OPS!
Posts: 1,078
Likes: 0
Received 0 Likes
on
0 Posts
Austrian Airlines could be bought by LH for 1 euro!
In the Austrian sunday papers an article details the continuing woes of Austrian Airlines.
In takeover talks Lufthansa has offered a 'bid' of 1 euro for the struggling carrier which currently is loosing 150 million euros a year with a debt to the state owned holding company of 900 million euros.
Drastic restructuring leading to a possible loss of 40 older LH aircraft and a quarter of the staff including 400 pilot jobs could be on the cards. Leaving the airline with 60 aircraft, mostly SH and 700 pilots.
If LH buy the carrier they will see the restructuring through with a 'sweetner' from the state to assist in the redundancy package programme. The final intention would be a slimmer Austrian Airlines complementing the LH route structure with the possible integration of 'Niki' low cost SH at a later stage.
Ouch, thoughts go out to all those who might lose jobs over this one. Seemed to come a little out of the blue! First of many perhaps?
1 euro plus a backhander to take over 150 million losses per year and 900 million euro debt. Seems LH are on a march somewhere!
In takeover talks Lufthansa has offered a 'bid' of 1 euro for the struggling carrier which currently is loosing 150 million euros a year with a debt to the state owned holding company of 900 million euros.
Drastic restructuring leading to a possible loss of 40 older LH aircraft and a quarter of the staff including 400 pilot jobs could be on the cards. Leaving the airline with 60 aircraft, mostly SH and 700 pilots.
If LH buy the carrier they will see the restructuring through with a 'sweetner' from the state to assist in the redundancy package programme. The final intention would be a slimmer Austrian Airlines complementing the LH route structure with the possible integration of 'Niki' low cost SH at a later stage.
Ouch, thoughts go out to all those who might lose jobs over this one. Seemed to come a little out of the blue! First of many perhaps?
1 euro plus a backhander to take over 150 million losses per year and 900 million euro debt. Seems LH are on a march somewhere!
Join Date: Oct 1998
Location: U.K.
Posts: 41
Likes: 0
Received 0 Likes
on
0 Posts
As an aside, exposure of Austrian banks to emerging market economies in Eastern Europe is 85% of Austrian GDP. Since those Eastern European economies are now in freefall does Anschluss loom again.
I Have Control
Join Date: May 2004
Location: North-West England
Posts: 49
Likes: 0
Received 0 Likes
on
0 Posts
Austrian---privatisation or what?
The Euro press is full of rumours about the short-term viability of Austrian Airlines. Are they in dire need of privatisation or is this a smoke-screen to enable LH to acquire another good but fiscally-troubled airline for peanuts? OS always seemed a survivor to me, but then so did SR.
Eight Gun Fighter
Join Date: Apr 2000
Location: Western Approaches
Posts: 1,126
Likes: 0
Received 0 Likes
on
0 Posts
VIENNA (AFP) — Austrian Airlines will be sold to German carrier Lufthansa, the Austrian state holding company OeIAG, which has a 41.6-percent stake in the loss-making airline, announced Thursday evening.
"As of now, OeIAG will only hold concluding talks with Lufthansa," it said in a statement after a meeting of its privatisation committee.
Rival suitors "(Russia's) S7 and Air France-KLM are no longer in the bidding process," it added.
"As of now, OeIAG will only hold concluding talks with Lufthansa," it said in a statement after a meeting of its privatisation committee.
Rival suitors "(Russia's) S7 and Air France-KLM are no longer in the bidding process," it added.
Guest
Posts: n/a
It would appear that Austrian has a history of repeating Swissair-isms: From growth-by-accumulation-of-crap-carriers to missing out on good collaborations. Lauda was in a way what Crossair was to Swissair, only they swallowed them before it happened the other way round. It doesn't surprise me that those at the economic helm are not entirely successful in their efforts.
Lufthansa seems to have found a way to keep things going profitably even in times of turmoil. Why complain, it did good for the new Swiss, at least they are still flying...
Lufthansa seems to have found a way to keep things going profitably even in times of turmoil. Why complain, it did good for the new Swiss, at least they are still flying...
Join Date: Jul 2005
Location: Ask OPS!
Posts: 1,078
Likes: 0
Received 0 Likes
on
0 Posts
Perhaps the proposed 1 euro price of Austrian Arrows has something to do with the buyout?
LH are prickly about the lack of state aid being given for the restructuring of the airline and the proposed 40% cut in workforce and the associated redundancy costs.
Unfortunately for LH the Arrows come with a hefty Euro 900 million debt and a loss, at current operating margin, of 150 million a year.
Should keep the accountants busy.
LH are prickly about the lack of state aid being given for the restructuring of the airline and the proposed 40% cut in workforce and the associated redundancy costs.
Unfortunately for LH the Arrows come with a hefty Euro 900 million debt and a loss, at current operating margin, of 150 million a year.
Should keep the accountants busy.
Join Date: Apr 2003
Location: Germany
Age: 76
Posts: 1,561
Likes: 0
Received 0 Likes
on
0 Posts
Today's news...
DeutscheWelle, the German equivalent of the BBC Overseas Service, just said that the Austrian government is debating debt forgiveness for Austrian. 900 million euros is a lot of debt, eh?
That will probably unleash some sort of debate in Brussels over whether that is allowed or not under the rules against subsidies. On the other hand, LH must have some sort of deal in place to avoid having an albatross hung around their necks. Not just debt forgiveness but being able to cut some of the staff must be on the cards, when that is such a political hot potato.
It's a real mess to see the European social safety net tangle the American de-regulation model, not that either one is the be-all and end-all.
It reminds me of some old buffer arguing that Africans were better under colonialism to read opinions that the airlines were better off under regualation but there is some truth to both these arguments. You have to wonder if the politicians are just following an ideology without thinking about practical consequences but in both cases there's no putting the genie back in the bottle now.
I feel that I might be better off never having pursued that airline career very far, the way things are going. Good luck to the guys caught in the mill.
That will probably unleash some sort of debate in Brussels over whether that is allowed or not under the rules against subsidies. On the other hand, LH must have some sort of deal in place to avoid having an albatross hung around their necks. Not just debt forgiveness but being able to cut some of the staff must be on the cards, when that is such a political hot potato.
It's a real mess to see the European social safety net tangle the American de-regulation model, not that either one is the be-all and end-all.
It reminds me of some old buffer arguing that Africans were better under colonialism to read opinions that the airlines were better off under regualation but there is some truth to both these arguments. You have to wonder if the politicians are just following an ideology without thinking about practical consequences but in both cases there's no putting the genie back in the bottle now.
I feel that I might be better off never having pursued that airline career very far, the way things are going. Good luck to the guys caught in the mill.
