Austrian looks ahead

Karim El Sanadily explains why the sky’s the limit for Austrian Airlines

by DOTW News staff | July 1, 2010 

What’s been happening at Austrian Airlines in the last 12 months?

Last summer we developed our new Austrian Next Generation strategy, which we are implementing throughout 2010 on a step-by-step basis. The concept is based on two pillars: measures to reduce costs, and the new active market strategy.

Our comprehensive cost-reduction measures are bringing our costs down to a competitive level. This will provide us with the room to manoeuvre necessary to employ a new active market strategy.

We are offering customers an improved product at attractive prices: deploying larger aircraft, providing more frequencies on key connections, and developing new additional services – all at competitive, attractive prices.

Your losses in the first quarter of 2010 were less than Q1 2009 – how have you managed to reduce the losses in these tough times?

We are working hard to reduce our costs. With our new market strategy we are on our way.

Traditionally, the first quarter is relatively weak in the airline industry. From the second quarter onwards, the effects of the restructuring programme will become more noticeable in the results of Austrian Airlines.

These include wide-ranging restructuring measures taken by the company to reduce the costs base, and the effects of the new, active market strategy which Austrian Airlines introduced at the end of March, taking effect at the beginning of the 2010 Summer Schedule.

When do you think the airline will return to profitability?

Austrian Airlines aims to generate a positive cash flow in 2010, and achieve a positive result from operating activities (EBIT) in 2011.

To what extent will the reduction of your workforce to 6,000 affect flight schedules or service standards?

With our comprehensive cost-reduction measures, we are bringing our costs down to a competitive level. As already mentioned this strategy provides us with the room for manoeuvre necessary for a new, active market strategy.

We are offering our customers an improved product at attractive prices by deploying larger aircraft, providing more frequencies on key connections and developing additional new services – and all at competitive, attractive prices.

The Austrian product management team is currently working around the clock to develop innovative new products and services, which we will gradually be introducing to the market.