Events for July
M T W T F S S
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
Add your event FREE

Today


Videos


Polls


Accomodations in Austria


Cosmo and Nanu

Lufthansa_CEO_Christoph_Franz_has_made_clear_that_affiliate_Austria_Airlines_(AUA)_has_to_cut_its_expenses.

Franz warns AUA

Lufthansa CEO Christoph Franz has made clear that affiliate Austria Airlines (AUA) has to cut its expenses.

Franz told the Manager Magazin that AUA must not be regarded as a "protected area". He appealed to the Viennese carrier’s executive board to accelerate the current austerity procedure. Aviation experts do not expect the chiefs of the struggling airline to meet the targets Lufthansa confronted them with.

The board of Europe’s biggest name in aviation wants its ailing Austrian subsidiary company to reduce personnel costs by 40 million Euros as early as this year. The ongoing dispute about reducing pilots’ incomes could keep AUA head Jaan Albrecht from fulfilling the goal.

Albrecht, who has headed AUA since November 2011, wants the firm’s 600 pilots to work under contracts similar to those of their colleagues at Tyrolean Airways (Austrian Arrows), a regional carrier which is part of the AUA Group. Tyrolean Airways was established in 1978, 21 years after AUA started operating.

Tyrolean Airways pilots’ wages are 25 per cent lower than those of most AUA pilots. Especially pilots who have been working for AUA for eight years or longer earn considerably more than their counterparts at Tyrolean Airways.

The executive board of AUA recently agreed with AUA supervisory board officials to enforce a reform of AUA pilots’ contracts to slash costs. Around 50 pilots consider leaving the company as a consequence, according to the Salzburger Nachrichten. Details of their contracts guarantee generous financial compensation if they decide to quit – regardless of the reasons for such a step.

Albrecht emphasised that he fully supported the Lufthansa board’s strategy. The former Star Alliance head said it was not acceptable that AUA’s personnel costs kept climbing despite a strong decline of its workforce level. He appealed to the works council to cooperate "to avoid that AUA crashes against the wall".

Albrecht’s team of negotiators reportedly managed to persuade Vienna International Airport (VIA or VIE) to lower usage costs and charges as a contribution to its budget consolidation. The Austrian government coalition of Social Democrats (SPÖ) and People’s Party (ÖVP) is rather reluctant in terms of granting financial support for the tradition-rich carrier.

AUA suffered a loss of around 60 million Euros in 2011 when it welcomed more than 11 million passengers. Around 80 airlines are operating at VIA. Nearly 51 per cent of flights are operated by AUA and other airlines belonging to the AUA Group.

VIA is managed by Flughafen Wien AG (FW). Günther Ofner and Julian Jäger co-head the firm which is quoted on the Vienna Stock Exchange (WBAG). VIA had 21.1 million passengers in 2011 (2010: 19.7 million). Over the years, the aerodrome has developed into one of the most important hubs for aviation services to destinations in Eastern Europe.

Vienna Times





Related articles: EU

  1. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  2. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  3. Austrian skiers create overnight stay record

    » Business 2012-05-29

    The number of winter season overnight stays by Austrians has reached a new record.

  4. Pecik defends TA engagement

    » Business 2012-05-24

    Telekom Austria (TA) investor Ronny Pecik has declared himself a team player.

  5. FW turnover takes off

    » Business 2012-05-24

    Austria’s biggest airport has managed to increase its profit.

  6. Küng tackles Schüller group

    » General News 2012-05-24

    Another top-tier representative of the Austrian Church has warned the Preachers’ Initiative from consequences.

  7. AUA rules out Whitsun travel chaos

    » Business 2012-05-23

    The current conflict with the works committee does not negatively affect Austrian Airlines’ (AUA) booking figures, according to a spokesman.

  8. Hollande's growth appeal 'nonsense', says Fekter

    » General News 2012-05-22

    Austrian People’s Party (ÖVP) Finance Minister Maria Fekter has launched an attack on the new French president.

  9. Schönborn warns disobedient priests

    » General News 2012-05-18

    Viennese Archbishop Christoph Cardinal Schönborn is upping the pressure on Helmut Schüller’s Preachers’ Initiative.

  10. Austrians concerned about EU unemployment

    » Business 2012-05-18

    Joblessness is what worries Austrians the most, a poll regarding European issues shows.

Related articles: crisis

  1. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  2. Property prices keep climbing

    » Business 2012-05-31

    A real estate expert has expressed concerns about property prices in Austria.

  3. Graz coalition collapses

    » General News 2012-05-31

    People’s Party (ÖVP) Graz Mayor Siegfried Nagl has ended his faction’s partnership with the Greens.

  4. FPÖ attacks Wrabetz

    » General News 2012-05-30

    ORF boss Alexander Wrabetz is under fire over his latest relocation calculations.

  5. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  6. TV tax increase ahead

    » Business 2012-05-30

    TV consumers in Austria must pay higher taxes from Friday.

  7. Pay cuts scare off AUA pilots

    » Business 2012-05-29

    Dozens of pilots have left Austrian Airlines (AUA) in the past weeks, according to the loss-making carrier’s works committee.

  8. Brauner discloses austerity course details

    » General News 2012-05-29

    Viennese Social Democratic (SPÖ) Finance Councillor Renate Brauner has revealed how the city government plans to save one billion Euros within the next five years.

  9. Austrian skiers create overnight stay record

    » Business 2012-05-29

    The number of winter season overnight stays by Austrians has reached a new record.

  10. Government's subsidisation reform suffers setback

    » General News 2012-05-29

    The government has failed to reach an agreement with the coalition concerning a reform of Austria’s party subsidisation system.

Related articles: CEE news

  1. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  2. Pay cuts scare off AUA pilots

    » Business 2012-05-29

    Dozens of pilots have left Austrian Airlines (AUA) in the past weeks, according to the loss-making carrier’s works committee.

  3. Austrian skiers create overnight stay record

    » Business 2012-05-29

    The number of winter season overnight stays by Austrians has reached a new record.

  4. Pecik defends TA engagement

    » Business 2012-05-24

    Telekom Austria (TA) investor Ronny Pecik has declared himself a team player.

  5. FW turnover takes off

    » Business 2012-05-24

    Austria’s biggest airport has managed to increase its profit.

  6. Küng tackles Schüller group

    » General News 2012-05-24

    Another top-tier representative of the Austrian Church has warned the Preachers’ Initiative from consequences.

  7. AUA rules out Whitsun travel chaos

    » Business 2012-05-23

    The current conflict with the works committee does not negatively affect Austrian Airlines’ (AUA) booking figures, according to a spokesman.

  8. Austrians concerned about EU unemployment

    » Business 2012-05-18

    Joblessness is what worries Austrians the most, a poll regarding European issues shows.

  9. Petrol traders plan legal action

    » Business 2012-05-17

    The domestic mineral oil industry plans to sue the government about plans to set up a tool regulating fuel prices.

  10. Sickness surge causes AUA cancellations

    » Business 2012-05-15

    Passengers are finally feeling the full impact of the emerging labour conflict at Austrian Airlines (AUA).

Related articles: AUA

  1. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  2. Pay cuts scare off AUA pilots

    » Business 2012-05-29

    Dozens of pilots have left Austrian Airlines (AUA) in the past weeks, according to the loss-making carrier’s works committee.

  3. FW turnover takes off

    » Business 2012-05-24

    Austria’s biggest airport has managed to increase its profit.

  4. AUA rules out Whitsun travel chaos

    » Business 2012-05-23

    The current conflict with the works committee does not negatively affect Austrian Airlines’ (AUA) booking figures, according to a spokesman.

  5. Sickness surge causes AUA cancellations

    » Business 2012-05-15

    Passengers are finally feeling the full impact of the emerging labour conflict at Austrian Airlines (AUA).

  6. AUA shrugs off flight chaos concerns

    » Business 2012-05-11

    Austrian Airlines (AUA) is determined to cover possible staff shortages.

  7. Makeover for VIA terminals

    » Business 2012-04-25

    The terminals of Vienna International Airport (VIA or VIE) will be renovated or rebuilt, according to Flughafen Wien AG (FW).

  8. AUA accord possible despite contract reform

    » Business 2012-04-24

    Austrian Airlines (AUA) chiefs and works committee officials are fighting for a consensual solution regarding the planned austerity measures.

  9. Franz warns AUA

    » Business 2012-04-19

    Lufthansa CEO Christoph Franz has made clear that affiliate Austria Airlines (AUA) has to cut its expenses.

  10. Emirates request rejected

    » Business 2012-03-23

    The Austrian infrastructure ministry has dismissed Emirates’ appeal for increased landing rights.


Tag cloud:
Albrecht  carrier  Europe  Airways  passengers  cooperate  Euros  Vienna  rsquo  personnel  Lufthansa  executive  operating  Aviation  Airlines  appealed  Austria  Tyrolean  contracts  Ouml


Latest News

 

Teen Dying Of Cancer Killed At Charity Event After Ride In Porsche Goes Wrong
The family of a sick boy who was offered a trip in a high-performance Porsche because he was dying of cancer is suing the charity after the Porsche he was travelling in crashed head-on into oncoming traffic.

Beekeeping is booming in Vienna
People living in Vienna have got a new hobby - beekeeping.

Queen of Englands favourite horses used as lawnmowers in Vienna
Horses from the famous Spanish Riding School are being used to help keep the grass down in city parks in Vienna.

Get an early start on the American Independence Day celebrations at Eton Institute
Get an early start on the American Independence Day celebrations at Eton Institute

Penguin Babies Earn Their Feathers At Zoo
These feathered friends are the latest additions to the penguin enclosure at Vienna's Schoenbrunn Zoo.

Sex On The Underground Station Filmed By Passenger
The fact that there were CCTV cameras in place or the fact that a train packed with passengers had pulled into the station didn't seem to bother this couple caught having sex in public at an underground train station in the Austrian capital Vienna.

Jobless Footballers Join Dole Rangers To Showcase Their Talent
Austria's job centres are entering the big league - by creating a football team to allow jobless footballers to showcase their talent and get work.

Eton Institute Vienna launches Summer Campaign with huge Online Sale
Eton Institute Vienna launches Summer Campaign with huge Online Sale Vienna language institute offers one-day occasion to boost personal and professional skills

Strongman pulls worlds largest twinjet plane out of hanger
A strong man known as the "Austrian Rock" has notched up his 16th endurance world record, this time by pulling a Boeing 777 plane from its hangar at the Vienna International Airport in Schwechat.

Museum of Applied Arts celebrates 150 years
The Museum of Applied Arts (MAK) is celebrating its 150th anniversary with three special exhibitions.

 


Rieders Digests


The most popular stories –
last 7 days