AUSTRIA: AUA OPTS FOR LOWER RISK

Article Abstract:

Austrian Airlines' decision to join the Star Alliance around Lufthansa is seen as the more comfortable and secure option than the alternative of going together with Air France and Delta Airlines. On the other hand, it is said that AUA would have had greater growth potential in the cooperation of the French and US airline, in which it would also have had more say than in the world's biggest airline group. AUA justifies the decision with the wish to remain independent (Swissair, with which AUA was cooperating in the Qualiflyer group, made an unfriendly attempt to raise its stake in AUA); with the prospects for expansion of Vienna Airport as a hub towards the east; with synergies from the world's biggest airline alliance (with a world market share of 17%); and the anticipated increase of corporate value. AUA expects the cooperation with Star Alliance to boost its profit on ordinary activities by Sch 300mn . Die Presse warns that the cooperation with Lufthansa may mean a loss of traffic to AUA in both flights to Germany and eastern Europe and prevent a fall of air fares. AUA's share price fell sharply after the cooperation with Star Alliance was made public.

Germany, Marketing procedures, Switzerland, Deutsche Lufthansa AG, Swissair

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AUSTRIA: AUA TO CUT COSTS

Article Abstract:

The supervisory board of Austrian Airlines (AUA) has decided on a cost-cutting programme in year 2000. Beside deriving synergies from the membership of Star Alliance, AUA is to postpone non-essential investments and recruitment of new non-flight personnel. AUA aims to raise profit on ordinary activities to Sch 1.016bn in 2000. Due to the situation in Kosovo and Turkey, the company saw a more than 40% fall in profit on ordinary activities to Sch 774mn in 1999 and remained Sch 500mn short of target.

Labor force information, Financial management, Shipments data, Statistical Data Included

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AUSTRIA: HIGHER PASSENGER NUMBERS FOR AUA GROUP

Article Abstract:

In 1999 the Austrian Airlines (AUA) group, which comprises also Lauda Air and Tyrolean Airways, saw a 5% increase in the number of passengers to an all-time high of 8.042mn. Load factor, however, fell 1.1%-points to 69.3%. AUA saw a 1.4% increase in the number of passengers to 4.456mn, Tyrolean 10.3% to 1.879mn and Lauda 9.2% to 1.707mn.

Lauda Air, Tyrolean Airways

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