Austrian Airlines: Operated by Tyrolean
The transfer of undertakings is completed. About 2,000 AUA staff members shifted to the regional airline Tyrolean.
After months of unsuccesful negotiations and disputes, the controversial transfer of undertakings is completed at Austrian Airlines. AUA shifted ist operated to the own subsidiary Tyrolean. Since the beginning of the months, 460 pilots and 1,500 flight attendants are employed by Tyrolean.
AUA´s management board intends to achieve savings of € 263m per year. Personnel costs should be cut sustainalbly by € 45m. According to AUA, the transfer of undertakings caused costs of € 80m. The main cost factor were severance payments with € 60m. Last year, AUA´s losses came at € 67m. CEO Albrecht aims to become profitable in 2013.
As the restructuring is almost finished, AUA will receive a capital injection of € 140m by its owner company Lufthansa. These funds are urgently needed as AUA plans to acquire ten new airplanes.
However, after more than 10% of the aircrew left the airline, a series of measures is necessary. First, part-time work will be cancelled. Second, about 40 pilots will be re-trained for Airbus planes. Third, managing pilots should be placed in the cockpit again and the number of leave days should be reduced. What is more, Lufthansa and Swiss will lease four planes including staff to AUA.
In 2013, new aircrew members should be hired in order to prevent another lack in staff in summer 2013. In total, the restructuring measures may cost up to € 100m. The bulk will be used for severance payments for leaving pilots. In return, reserves of € 130m may be liquidated.