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Austrian Airlines

Austrian Airlines is the national airline of Austria and is based at Vienna International Airport. Along with its charter arm, Lauda Air, the carrier operates both domestic and international networks, particularly to Eastern Europe and the Middle East. Austrian's regional carrier, Tyrolean Airways, merged with Austrian on 01-Apr-2015.

Location of Austrian Airlines main hub (Vienna International Airport)


 
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1,094 total articles

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67 total articles

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Gulf airlines continue Southeast Asia push. Should Lufthansa & Singapore Airlines respond with a JV?

20-Aug-2015 6:40 PM

Lufthansa and Singapore Airlines have steadily been losing market share to the Gulf carriers. The two carriers have tried to use product upgrades to improve their position in the Asia-Europe market but have enlisted little help from potential partners – for example, each other.

Despite their Star Alliance membership, partnership is hardly the core of their relationship. Should they – and more critically, can they? – set aside their differences to combat their greater enemy?

Lufthansa and SIA together account for about 27% of non-stop Southeast Asia-Western Europe seat capacity. But when also counting passengers flown through all connecting points their share of the market is only 13%, according to OAG Traffic Analyser data. Emirates alone has 12% of the market, and once Etihad and Qatar are added, 27% of passengers between Southeast Asia and Western Europe now transits with the three Gulf carriers.

Lufthansa grows 2Q result; continues Eurowings expansion & labour talks; introduces GDS fee

3-Aug-2015 12:52 PM

The Lufthansa group grew its adjusted EBIT by 52% in 2Q2015, in spite of the negative impacts of pilot strikes and currency movements. Lower fuel costs were a significant factor in the improved result. The Passenger segment was the biggest contributor to the improvement and MRO also helped, but Lufthansa Cargo suffered a fall in its result in 2Q after an advance in 1Q. For FY2015, the group still aims for an adjusted EBIT of more than EUR1.5 billion and perhaps now has a little more headroom for this aim.

Meanwhile, the Lufthansa group is attempting to push forward with a number of important developments. It is expanding its Eurowings subsidiary, which will progressively take over from Germanwings on short haul point to point routes. In addition, Eurowings will launch low cost long haul leisure routes this winter, using wet lease capacity from SunExpress (jointly owned by Lufthansa and Turkish Airlines). This LCC initiative runs in parallel with ongoing attempts at improving mainline labour productivity. The group is also introducing a new commercial strategy, including charging a fee for GDS ticket sales.

IAG, Lufthansa & Air France-KLM: don't risk RASK. Lessons from 1Q2015 unit revenue & capacity growth

8-May-2015 8:28 PM

The 1Q2015 financial results of Europe's Big Three legacy airline groups again highlight their diverging pathways. Although all three recorded improved results versus last year, IAG underlined its superiority by posting a positive operating profit in what is seasonally the weakest quarter.

CAPA analysis often highlights the importance of cost discipline and much of IAG's success relative to Air France-KLM and Lufthansa is due to the head start it gave itself in pushing restructuring, particularly of labour costs. This remains crucial.

However, the focus of this report is to analyse the 1Q2015 unit revenue (RASK) performance of the Big Three and the relationship between RASK growth and ASK growth. Our analysis confirms that RASK performs better under conditions of tight capacity discipline, but also highlights some crucial differences between the Big Three and between their major route regions.

China Southern 6th airline in history to carry over 100m passengers. Now for improved efficiency

6-Jan-2015 8:13 PM

China Southern Airlines has become the sixth airline group in the world – and the first outside the United States or Europe – to transport over 100 million passengers a year. Founded only in 1988, China Southern reached this milestone in 2014 faster than the other groups carrying over 100m passengers: American Airlines, Delta Air Lines, Lufthansa Group, Southwest Airlines and United Airlines. Ryanair expects to carry 97m passengers in 2015, likely leading it to carry 100m shortly thereafter.

The Air China and China Eastern groups are expected also to cross the 100m mark. Fast growth at the HNA Group could also see it carry 100m passengers around the turn of the decade. This would be impressive given the group has limited public capital, but would also give China four groups with over 100m passengers, matching the US.

China Southern is big, but this fast growth, partly organic, partly through merger, has come at the expense of efficiency. It may have the highest growth prospects but it also has considerable work ahead to become agile. It could also have the most at risk as its core domestic market faces new competition while long-haul performance continues to lag.

US airlines take aim at the Gulf carriers when perhaps they would be better woo-ing them

19-Dec-2014 11:31 AM

Some prominent airlines in Europe and elsewhere take explicit aim at the Gulf carriers "stealing" traffic via sixth freedom flows, which they argue "belongs" to them. Yet, though this transfer traffic comprises about 80% of the Gulf airlines' US flights, the US airlines in their still-protective rhetoric against Gulf carriers do not target this sixth freedom element. The source markets for Gulf carriers' US flights are highly fragmented, and even the largest source markets – from Hyderabad to Dhaka to Kabul – are not served by US carriers and seldom have high frequency, if any, from their international partners. "Delta has never been a big player in that market," Delta chief revenue officer Glen Hauenstein has acknowledged.

Instead, some vociferous US airlines are more strongly opposed to growing fifth freedom services across the Atlantic. But there is an irony: Delta, the most outspoken, has its own fifth freedom network; it is not insignificant, at about half the size of Emirates'. Emirates' Milan MXP-New York JFK service sparked concerns, but American and Delta quietly acknowledge their own international stagnation paved the way for Emirates' entry. German researchers believe Emirates will be able to open only a "handful" of fifth freedom trans-Atlantic routes, and these will depend on legal changes since many UAE-Europe air service agreements (besides Germany) do not provide for fifth freedom trans-Atlantic flights.

So what explanation is there for some US airlines reacting so strongly against what is at worst a minor competitive threat that can be avoided through proactive commercial decisions – and partnerships?

Lufthansa: 2015 outlook lowered again as 3Q2014 results show ongoing unit revenue weakness

31-Oct-2014 8:31 PM

According to Lufthansa Group CEO Carsten Spohr, 3Q2014 "was no walk in the park". The group's business was affected by weak revenue conditions, external events such as Ebola and the Ukraine crisis - and more strikes by Lufthansa pilots.

In spite of this, Lufthansa remains on course to meet its 2014 operating profit target of EUR1 billion (although this was lowered at the half year point and is lower than the 2013 result on a like for like basis). However, Lufthansa has abandoned its 2015 operating profit target of EUR2 billion (which was cut from EUR2.65 billion in mid 2014), citing a "darkening economic outlook".

Mr Spohr's agenda continues to be very full. He must seek further cost reduction in the network airline business, while continuing to position as a premium product; repair relations with Lufthansa's pilots; develop and grow new lower cost point to point airline platforms; and capture growth in the more stable aviation services markets. And he must return Lufthansa to a profit growth trajectory after years on a falling trend.

This content is exclusively for CAPA Membership Subscribers

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This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.