Austrian Airlines: questions raised over Tyrolean transfer and Austrian's long-haul future

On 30-Sep-2013, Austrian Airlines (AUA) celebrated its 56th anniversary of commencing operations in 1957. It also recently passed its biennial Star Alliance audit with what it said were the best results in its history and its parent Lufthansa confirmed that it expects it to return to profit in 2013 for the first time since 2007.

But looking beneath the surface of this birthday re-spray, there might just be some wrinkles on its skin.

A Sep-2013 court ruling questions the legality of AUA's 2012 transfer of flight operations to its Tyrolean Airways subsidiary. AUA is appealing the decision and the transfer remains effective pending the outcome. This radical move, aimed at lowering staff costs, was part of the vital restructuring necessary to restore profitability. Some two weeks after this court ruling, Lufthansa announced a major widebody order that did not include aircraft for AUA.

The two events may not be directly related, but serve as a reminder that the success of AUA's restructuring must surely be a pre-condition for any major additions to its fleet.