Austrian Times RSS FeedsLike the Austrian Times Facebook page!Follow us on Twitter!


Events for September
M T W T F S S
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 1 2 3 4 5
Add your event FREE

Today

Videos


BurgKino

Pub Quiz everyTuesday at Johnny's Pub

Popular in Austria


Cosmo&Nanu

Lufthansa all-clear for AUA capital increase

Austrian Airlines (AUA) is set to receive fresh capital from Lufthansa while bosses up the pressure on the ailing carrier’s pilots.

Lufthansa CEO Christoph Franz said yesterday (Thurs) that the Viennese airline – which was acquired by Lufthansa in September 2009 – would get 140 million Euros. He warned that the money would only be transferred if the AUA board managed to keep lowering operative costs.

AUA boss Jaan Albrecht was ordered to save 220 million Euros a year. The German-Mexican aviation industry expert and former pilot plans to lower AUA’s personnel costs which currently make 25 per cent of the company’s overall expenditure.

Albrecht and co-AUA board members Peter Malanik and Karsten Benz want the carrier’s 600 pilots to accept an immediate pay freeze and a cut of 25 per cent in the long run. The works council and Austrian unionists said after the most recent round of negotiations – which ended without results – they wanted to continue discussing a "fair model".

Malanik said yesterday that his team was ready to meet the employees’ representatives again but also warned that the creation of a new type of contract was on its way. Albrecht claimed that AUA staff’s contracts must be "modernised" to ensure the airline’s competitiveness while Malanik underlined the urge to stop its "cost explosion". He said that substantial changes to the carrier’s structure were needed.

AUA pilots’ contracts feature automatic salary increases and comparably generous pensions. Bosses of the airline plan to create new contracts similar to those of the pilots of AUA affiliate Tyrolean Airways (Austrian Arrows). Sources close to the AUA executive board claimed yesterday that ground personnel’s wages would not be affected by the airline’s upcoming austerity package. Reports have it that Lufthansa and AUA bosses were unable to find a significant savings potential – in contrast to the contracts of pilots and cabin crew.

Franz said yesterday he was convinced that AUA had the potential to achieve a turnaround but also warned that Lufthansa would not continue pouring money into the airline indefinitely if it failed to perform profitably. AUA suffered operative losses of 59.4 million Euros last year. Lufthansa initially wanted the carrier to be back in the black by the end of this year. Now managers admitted that AUA was likely to make a loss once more in 2012.

Franz argued that he was in charge of 120,000 Lufthansa Group employees. While AUA and low-cost carrier Germanwings struggled last year, Lufthansa and Swiss did comparably well. Nevertheless, Lufthansa CFO Stephan Gemkow claimed that the aviation industry competitors had to stop engaging in price wars due to sharply soaring kerosene prices. He said the era of dumping ticket prices must come to an end.

The Lufthansa Group managed to increase its passenger figure by four per cent to nearly 6.7 million from February 2011 to February 2012 – despite a strike at Frankfurt Airport (FRA). The labour conflict at Germany’s busiest aerodrome forced the firm to cancel almost 1,500 connections last month.

Austrian Times


Are you on Facebook? Like the Austrian Times on Facebook and win great prizes!


Cosmo and Nanu
ORF Watch

Related articles: EU

  1. Best of the bookshelf in May, part four

    » Panorama 2012-05-31

    A Harvard University professor’s book on the killing of Osama Bin Laden, a collection of funny experiences on planes and many more interesting releases are out now.

  2. Drachma reintroduction 'would mean social explosion'

    » General News 2012-05-31

    A renowned economist has warned from reintroducing the drachma in Greece.

  3. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

more related articles tagged "EU"

Related articles: crisis

  1. Drachma reintroduction 'would mean social explosion'

    » General News 2012-05-31

    A renowned economist has warned from reintroducing the drachma in Greece.

  2. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  3. Property prices keep climbing

    » Business 2012-05-31

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

more related articles tagged "crisis"

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.

more related articles tagged "CEE news"

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.

more related articles tagged "AUA"

Tag cloud:
airline  Malanik  operative  Euros  price  potential  personnel  comparably  Albrecht  aviation  employees  rsquo  carrier  German  capital  contracts  ndash  Austrian  industry  Lufthansa

Latest News

 

Brit Soldier Rescued After Climbing Mountain In T Shirt
A British soldier who tackled the frozen Austrian Alps wearing just shorts and a T-shirt has been rapped by officials after he had to be rescued from the snowy peak.

Mum And Daughter Struck By Lightning In Pool
A mother and her daughter were hospitalised after they were struck by lightning – in a swimming pool.

Police Nab Porn Star Who Filmed In Local Church
A woman accused of making a porn movie in a local church has been caught after an informant tipped off police that he recognised her by her breasts after an appeal for information.

Young Hip Hop Dancer Gets 18 Years For Drug Smuggling
A blonde hip hop dancer and charity worker promised an international career after she was spotted by a talent scout has been jailed for 18 years in Indonesia after her work offer turned out to have been part of an elaborate drugs con.

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.

Japanese Pervert Planned Natascha Kampusch Style Kidnap
A Japanese man inspired by Austrian pervert Wolfgang Priklopil kidnapped a 10-year-old girl and kept her in a purpose-built cellar where he planned to train her to become the perfect wife.

German Hiker Yodels For Help After Getting Trapped In Cattle Grid
A portly hiker dressed in traditional Lederhosen was rescued after he yodeled for help after getting stuck for three hours in a cattle grid.

Austrian Wine Grower Sets New Record For Maturing Grapes
An award-winning Austrian winegrower is believed to have set a new record after leaving harvested grapes for an incredible nine months before fermenting them to create an ultra-sweet white and red wine.

Austrian Castle Owner Shocked By Airplane Wheel In Duck Pond
An Austrian castle owner got a shock after discovering this massive aircraft wheel had landed in his duck pond.

Glock Receives Austrian Award At Birthday Party
Austrian gun maker Gaston Glock has celebrated his 85th birthday with a huge ceremony in which the charitable work of himself and his wife Kathrin was honoured with a top Austrian award, and confirmation that this year two streets and a business park are to be named after him.

 


Mala Vrata

The most popular stories –
last 7 days



Don't moan alone, the Ombudsman Investigates.

Why suffer in silence. Let off steam by letting our readers share your troubles. File your complaints about anything and everything here.

Our ombudsman David Rogers will try and help solve some of the problems from lazy civil servants through to incompetent companies – and at the very least the worst transgressors will end up in our weekly special report.


Austrian Zimmers