The Tyrolean air carrier Austrian Arrows is to lay off 400 staff as part of 1,000 job cuts at Austrian Airlines.
AUA bosses Andreas Bierwirth and Peter Malanik said last week the cuts over the next twelve months were part of "sustainable” cost-cutting measures which were essential to get the company through its current crisis as bosses look to save more than 200 million Euros by 2012.
But it was revealed today that short-distance flights run by AUA’s subsidiary Tyrolean will be heavily affected.
The company said today that business customers were booking fewer short-distance flights due to the economic crisis - making profit almost impossible using Tyrolean’s many 50-seater airplanes. The plan is to cut the 55-plane Tyrolean fleet by 14 with the aircraft being sold. Some of them will be replaced with bigger airplanes but job cuts are unavoidable, it was added.
This announcement comes as doubts remain over the sale of the struggling company to German competitor Lufthansa.
The European Commission (EC) has said it will take more time to scrutinise the deal, but Lufthansa can back out of it if it has not been approved by 31 July.
According to reports, EU Competition Commissioner Neelie Kroes is concerned Lufthansa’s acquisition of AUA will result in less competition and higher ticket prices.
Economy Chamber President Christoph Leitl recently warned of serious consequences for the Austrian economy if the EC does not give the deal the green light. Leitl warned a collapse of the deal would put Austria’s status as an international business location in jeopardy.
Source: Wiener Zeitung
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