Austrian Airlines Group outlines restructuring process

Austrian Airlines Group initiated (11-Dec-2012) a further step in the restructuring programme. This step will eliminate redundancies in its organisation as identified through a review in 2H2012 of the operating procedures employed in the flight operations of Tyrolean Airways, in technical processes and in administrative departments. The result is potential savings "somewhat greater than €10 million". As part of the restructuring, 150 administrative positions out of the Group's 6320 employees will be cut. Tyrolean Airways MD Gaudenz Ambühl said: "This is a highly painful move. However, it is one that our restructuring makes inevitable. This makes it possible for us to realize all of the savings in costs enabled by the operational transition. These measures have been widely expected. They will now eliminate the redundancies found in operations." The following measures were resolved upon:

• Flight control operations are currently managed from two centers, which will all be handled by the Vienna hub;
• The headquarters of all flight administration operations will be set up in Innsbruck and will involve the establishment of a shared services centre in the city, to which nine departments will be assigned;
• The planning of personnel, resources and rotation will be concentrated in Innsbruck;
• Redundant operations will be eliminated at Austrian Airlines. The "Part M" responsibilities forming part of technical maintenance - with these including the engineering, the planning and the management - will be grouped in Tyrolean. The technical maintenance of the fleets will continue to be undertaken at a variety of stations. Innsbruck will handle the maintenance of the Bombardier Dash 8 aircraft; Vienna, the Fokker, Airbus and Boeing aircraft; and, Bratislava, the overhauling of the Fokker fleet.

Austrian Airlines CEO Jaan Albrecht said: "The difficult conditions prevailing on markets do not leave us any choice. We have to increase our organization's efficiency and to eliminate redundancies in the entire Group. This especially applies to duplications in our organizations, of which we have been aware for a number of years." All measures will be implemented in 2013 and the carrier has resolved to set up a social plan for the employees affected with details being worked out with the works council. [more - original PR]