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Austrian Airlines

Old 11th Jan 2006, 14:03
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Austrian (AUA) to offer regular flights to Iraq

http://www.forbes.com/business/feeds...fx2437372.html
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Old 12th Jul 2006, 08:31
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Exclamation Austrian Airlines

There appears to be some talk about the Austrian Airlines Group planning to withdraw its 777 services to Sydney and Melbourne in the not so distant future.
This surprises me as their Seat Factor is very high and
they have very competitive costs when compared to Qantas and British Airways.
The other competition comes from Emirates and Malaysian.

Additionally it is the fastest way to Europe and they are in fact the cheapest.
If this is a move to reduce their profit loss and the ever increasing fuel prices why are they not raising fares
and delay their business class sleeper seat refurbishment.
Does anyone have some information on whether this rumour is true ?
Maybe Lauda should have remained as he is a successful businessman
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Old 12th Jul 2006, 11:27
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Niki is not only a great business man, but a genius. Bring him back.
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Old 12th Jul 2006, 11:45
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I have indeed heard this one myself but cannot not believe it to be true.
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Old 12th Jul 2006, 12:11
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rubbish

Australia is the only moneymaker in the network and guess what happens to an ailing carrier killing the cashcow.
And Niki - signed all the contracts and payment terms of the past, taking the copany to the r+++s, actually three times.
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Old 12th Jul 2006, 13:28
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I have used Lauda (always will be to me) many times between Europe and Aus and its always good. If it is being killed of it must be in some kind of Star Alliance deal between SQ, LH and AU.

I only say this because sometimes up to half of the Aus bound pax are transfers from numerous AU & LH feeds in to VIE on LH ticket stock.

This being the case I very much doubt the rumour
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Old 12th Jul 2006, 13:29
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Well, FWIW, they have done it in the past. Axed the highly profitable Joburg / Capetown route for no apparent reason at some point back in the 90s....
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Old 12th Jul 2006, 14:44
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Originally Posted by Air_madness
...as their Seat Factor is very high and they have very competitive costs ...
With costs you mean ticket prices?
How would you know the costs they have?

Of course they cannot fill up their 777 that's why their tickets are cheap, that's why they make no money, that's why they stop the service. There is no home market from VIE to fill up an aircraft to Australia.

Dani
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Old 12th Jul 2006, 15:13
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This surprises me as their Seat Factor is very high and
they have very competitive costs when compared to Qantas and British Airways.
Duh - low yield = lossmaking!

Bums on seats does not mean the thing makes money!
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Old 12th Jul 2006, 17:42
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B y hope not - booked to go home for Christmas!
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Old 13th Jul 2006, 06:20
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Dani is right there is no real home market….. However AU filled the gap left by—

JAT that used to be a DC-10 to Aus
Olympic that was A340
LH that was 747 then 767
AZ that was 747 as well

You would be surprised how many people form these nations feed the AU 777. As to yield, that’s not my bag baby but the are definitely profitable on this selected route by the numbers I have seen.

Maybe Mr172 has come closer to the mark, AU have made some strange decisions in the past.
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Old 13th Jul 2006, 11:06
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SQ, EK and CX don't have much of a 'home' market (discounting mainland China in the case of CX) but they seem to all do ok on the Europe-Australia run.

It's a pretty easy connection in Vienna - flight from London rolls up and the tripler for Sydney - if not at the very next gate - isn't far away, given the little round satellite terminals at VIE.
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Old 13th Jul 2006, 11:47
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Originally Posted by Taildragger67
SQ, EK and CX don't have much of a 'home' market (discounting mainland China in the case of CX) but they seem to all do ok on the Europe-Australia run.
But they're not really serving their home market, are they? They're carrying transfer passengers through their respective en-route hubs. Cities which are a) convenient intermediate stops, and b) pleasant places to break your journey for a few days.
Originally Posted by Taildragger67
It's a pretty easy connection in Vienna - flight from London rolls up and the tripler for Sydney - if not at the very next gate - isn't far away
Why would anyone want to do that, given the other options from London?

Last edited by Andy_S; 13th Jul 2006 at 12:00.
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Old 13th Jul 2006, 11:57
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As mentioned, Lufthansa and Alitalia have pulled out of the market, as has KLM. And Air France? I guess they flew there after they took over UTA. Plus Olympic and JAT.

That leaves only BA, Virgin and, er, Austrian as the only Europeans still flying to Australia. Doesn't that tell you something about the viability of the market?
 
Old 14th Jul 2006, 10:53
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Originally Posted by Andy_S
But they're not really serving their home market, are they? They're carrying transfer passengers through their respective en-route hubs. Cities which are a) convenient intermediate stops, and b) pleasant places to break your journey for a few days.
Why would anyone want to do that, given the other options from London?
a) DUBAI a pleasant place to break your journey? Only if you're a chav. Gimme Vienna any time. Cheaper beer for a start.

b) Coz they're usually CHEAPER than the other options mentioned, but without sacrificing as much time as the likes of MU, JL, KE, etc. with the Asian airport night-stop (but not as good as MH when they're having a special!). Example - for Sydney to London, the difference between the OE via Vienna and, say, Sing Air is about two hours. And the tube's less packed after the 9am arrival anyway!
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Old 14th Jul 2006, 11:07
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Austrian is going to receive the fourth 777 in the near future. I have some sources telling me that the 777's are going to fly JFK, Montreal and Tokyo as from the next winterschedule.

Bye bye Sydney, bye bye Melbourne.
As someone wrote before, full aircraft don't say anything on profitability of a route.

It's a pity, but reality.
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Old 14th Jul 2006, 11:31
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Originally Posted by Taildragger67
Coz they're usually CHEAPER than the other options mentioned
Austrian cheaper than MH, TG, CX, SQ? If they are, then it would explain why their planes are full but they're losing money on the SYD route.
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Old 14th Jul 2006, 12:19
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All the European airlines have felt yield pressure from the Asian and select few Middle East airlines between Europe and Oz.

It was not really the fact that they were losing money, most in fact were in the black (a least a little bit) however when faced with the fact that they could double the "sector" utilisation and increase profitability on other routes without tying up an airframe for 48hrs return journey. There’s the answer.

I certainly hope that JFK, Montreal and Tokyo are not replacements for the Syd 777 services but with one more T7 coming and the 342's gone I can only surmise that this will be the case.

There is money to be made in this kind of system but you need, retail distribution and route frequency to maintain both services levels and consequently passenger yield.
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Old 24th Jul 2006, 12:53
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Anyone heard anything further on this topic?
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Old 25th Jul 2006, 07:32
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fact

The status of rumor has now changed to reality.

all down under stops at 03.07.
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