AUA: Additional Savings Needed

Published: April 7, 2011; 08:27 · (Vindobona)

The restructuring program of AUA is not sufficient to bring the company into positive numbers in view of the events in Japan and North Africa.

AUA: Additional Savings Needed / Picture: © Austrian Airlines

AUA, despite all restructuring efforts, are in no position to obtain positive results without further savings measures. The airline industry is affected by the crises in Japan and North Africa.

In addition, increased competition has to be taken into account, and also new sharp rises in fuel prices. Overall, additional costs of over € 30m are expected for the current year.

The staff of Austrian Airlines has already been informed that measures previously undertaken are insufficient. The goal to reach positive operating profits by the end of this year is in danger, according to the Board. This must not be allowed to happen. 2011 will therefore be a "challenging year ".

In 2010, the operating loss amounted to € 64.7m, after € 231m in 2009. According to the management there should be no layoffs however. Neither are price increases being debated, but rather "a number of individual measures". The management structure might also be affected.

However, AUA already has declared an acute recruitment freeze. In recent months, the company had started to hire more personnel.