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Changes - and perhaps conflict - ahead for Austrian Airlines as it seeks a return to profitability

Analysis

Austrian Airlines is facing a testing period after posting operating losses of well over EUR100 million (USD129 million) over the past two years. The carrier, under the leadership of new CEO Jaan Albrecht, is aiming to return to profitability in 2012 but significant changes will have to occur for this to become a reality. Austrian has stated that it suffers from multiple historical structural disadvantages, forcing it to implement a restructuring programme to stabilise the carrier and ensure its future "once and for all". But rumblings from staff suggest this might not be plain sailing.

Cost reductions reaching EUR200 million (USD255 million) in 2012 are going to be key factors in the airline's mission to return to the black. This year will also see continued uncertainty in the airline's focus markets, with the crisis in the Eurozone and increased expenses resulting from the European Union's Emissions Trading Scheme likely to affect plans at the carrier.

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