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Austrian Airlines is the national airline of Austria and is based at Vienna International Airport. Along with its regional subsidiary, Tyrolean Airways, and charter arm, Lauda Air, the carrier operates both domestic and international networks, particularly to Eastern Europe and the Middle East.
On 1-Jul-2012, as part of its restructuring and cost reduction programme, Austrian transferred all of its mainline services to Tyrolean. At least 110 pilots refused the transfer, accepting instead very generous redundancy terms. The carrier continues to operate under the Austrian Airlines AOC and under the Austrian brand.
Austrian Airlines is a member of the Star Alliance.
Location of Austrian Airlines main hub (Vienna International Airport)
601 total articles
41 total articles
Lufthansa is the most consistently profitable of the Big Three European legacy flag carrier groups and the only one to make a positive operating result in 2012. With 236 aircraft on order and a strong balance sheet that should facilitate funding these deliveries, it appears to be in a league of its own in Europe. However, group operating profit, which fell from EUR820 million in 2011 to EUR524 million in 2012, has been on a downward path since 2007. Results at the core Lufthansa Passenger Airline fell into loss, making it the group’s weakest performer in 2012, a shocking reinforcement of the need to change.
Lufthansa is taking radical steps to restructure non-hub short-haul routes using its LCC subsidiary Germanwings after similarly radical restructuring at its Austrian Airlines subsidiary and is determined to push through with its SCORE cost savings programme. For 2013, it is targeting only a better operating result than last year, but its 2015 target of an operating result of EUR2.3 billion would represent its best ever three year improvement.
China is the world’s most populous nation and its second largest passenger aviation market with enormous growth potential in spite of some regulatory brakes. So why is it that some European countries are under-served to China by their home carriers, in particular Spain, but also Italy and the UK? It is not an easy market to serve and yields remain low, but it is a must-do market.
Air China and Lufthansa are the biggest players on Europe-China and this is reflected in the Star Alliance controlling almost half of the seats on these routes and SkyTeam’s Air France and KLM both have strong positions in Amsterdam and Paris respectively. By contrast, British Airways finds itself in the most competitive Europe-China market, the UK and without a Chinese partner.
While BA is starting a Chengdu service and increasing its Shanghai frequency from six times weekly to daily, Iberia is absent entirely from China and IAG looks very under-represented in this large and fast-growing market. In spite of Finnair carving out a successful niche, oneworld is an also-ran on Europe-China, with only a 10% share.
Skymark Airlines, Japan's third-largest domestic carrier, is switching its first A380 destination from London to New York in a bid to improve profitability amidst an atmosphere of economic uncertainty in Europe that shows no signs of relenting. But Skymark has far more work ahead of it, and success from its A380 operation seems an elusive goal. The carrier faces significant hurdles in three key areas: network, partnerships and aircraft configuration.
An entirely domestic carrier, Skymark accounts for only 5% of domestic Japanese seats, limiting feed opportunities. It has no earnest partnerships of its own despite much-bigger All Nippon Airways and Japan Airlines having joint-ventures across the Pacific and to Europe that deliver far greater traffic opportunities and a larger customer pool. Finally, Skymark intends to have the least dense A380 with a mere 394 seats in all premium economy and business configuration – and aims to have an average load factor of 60%, requiring tickets to be sold at yields too high to see profitable take up.
Germany’s powerful Chancellor Angela Merkel was not to sit idly by and watch how Lufthansa would be checkmated in the ongoing challenge towards a new world order for the airline industry, so decided to move some of the pawns: bring Europe’s largest airline group together with Europe’s fastest growing airline, Turkish Airlines. The news must have come as a surprise and while nothing is decided or formally announced, a combination of Lufthansa and Turkish Airlines would make the Qatar-oneworld deal and the Etihad-Air France-KLM-airberlin codeshare agreement look like child's play. Moreover, it would keep the “subsidised” Gulf carriers at bay and halter further inroads, at least in central Europe where Lufthansa is the dominant player.
Turkey’s Prime Minister Tayyip Erdogan revealed the talks of a potential Turkish Airlines-Lufthansa partnership in a speech to his ruling AK Party on 03-Nov-2012, saying he had agreed to a proposal by Mrs Merkel to establish joint management of the two carriers.
Europe’s largest airline group has decided to further revise full-year capacity growth downwards to 0.5% and rigorously pursue its SCORE restructuring programme to protect yield and combat the dire operating environment marked by economic uncertainties in Europe, a night-flight ban at its main hub in Frankfurt, increased air traffic taxes and above all high fuel prices. Lufthansa Group’s decision follows an unsatisfactory performance in 1H2012 in its passenger airline business segment, which recorded an operating loss of EUR179 million, widening the EUR100 million operating loss recorded in the year-ago period despite a 7.2% increase in revenue to EUR11.2 billion.
The Group’s airlines recorded diverging results and highlights the need to cut costs at its largest unit Lufthansa while simultaneously increasing synergies between the different airlines. Lufthansa German Airlines amassed a 1H2012 operating loss of EUR300 million (nearly double the EUR146 million operating deficit reported 1H2011) while SWISS and Austrian Airlines earned EUR48 million and EUR26 million, respectively. Austrian’s operating performance reflects the ruthless restructuring implemented by CEO Jaan Albrecht and the noteworthy turnaround is in contrast to the declining performance of Lufthansa Group’s long-standing star SWISS.
While Japan attracts attention for the three new lost-cost carriers being established there this year, there are also significant changes under way in its long-haul and full service carrier space that are occurring independently but also consequent to the LCC movement.
All Nippon Airways (ANA) intends to have Lufthansa group carriers Austrian Airlines and Swiss International Air Lines join its Japan-Europe joint-venture with Lufthansa German Airlines. The combined entity will control 33% of Japan-Europe traffic, the largest share of any immunised alliance. This will bolster ANA as it intends to grow its long-haul network, relying less on its LCC-invaded short-haul network, and is also a move against Japan Airlines (JAL), which is strengthening its position with International Airlines Group (IAG), and perhaps Finnair in due course.
ANA's stated intentions to consider acquiring foreign carriers, including LCCs, and lending management advice could further revolutionise Japanese aviation, but not without perhaps significant implications for any acquired airline.
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