Extraordinary Supervisory Board meeting: management reconfirms need for reform

February 13, 2012 flight2000it

In an extraordinary meeting of the Supervisory Board held today, the Board of Management of Austrian Airlines reconfirmed the need for the company to undergo structural reform. “AUA can only reach flight altitude if we modernise our company. We need to get rid of outdated practices if we want to make the necessary investments – most importantly, the harmonisation of our medium-haul fleet and renewal of the cabins”, said Austrian Chief Executive Officer Jaan Albrecht, describing the situation.

Status of work programme: positive talks with suppliers, airport and politicians, but no negotiations with union as yet

Austrian Airlines has made progress in its work programme:

• Route network: the route network, with its focus on Eastern Europe and the Middle East, has been reworked. The details of this are to be introduced next Monday. The first adjustments in route planning led to a highly satisfactory increase in passenger numbers of 7 percent in January.

• Charges, politicians and Flughafen Wien: the management of Austrian Airlines has used the month of January to give politicians, suppliers and Flughafen Wien, operator of Vienna Airport, an understanding of the situation and the future concept of the company. Albrecht said the following: “My talks have all been marked by reasonableness and understanding. The new airport management also proved in the initial talks that it has recognised Austrian Airlines as its future partner for growth and the strengthening of Vienna as a business location.”

• Renewal of medium-haul fleet: potential buyers have already been found for a sale of the eleven Boeing 737 – negotiations have been launched. At the same time, together with Lufthansa, Austrian Airlines has begun sounding out the market for the acquisition of seven aircraft of the types Airbus A319 and A320 and for 4 long haul aircraft of the types Boeing 777 for the years 2013/2014.

• Modernisation of collective agreements: There has not been much progress in the area of the newly planned collective agreements, unfortunately: the dates offered have now passed without being used. On 14 February, a first date was confirmed by representatives of cabin staff; labour union GPA confirmed today, that there will be talks next week. Jaan Albrecht: “I have the highest respective for staff and the staff representatives. Our members of staff are the basis for the success of our company. But I appeal once again to the representatives to be reasonable. The situation is too serious to play for time here.”

The background: The Austrian Executive Board conveyed staff representatives a collective agreement as a negotiation proposal in mid-January. Above all, the new collective agreement should modernise automatic wage increases, expensive severance payments rules and old flight service times. The collective agreement is based on that used by successful sister company SWISS and in the Austrian industrial sector.

Source: Austrian Airlines