After a thorough analysis during the preceding 2 quarters that involved reviews of their administrative and technical operations including those of Tyrolean Airways, Austrian has found ways to further reduce expenses by an additional €10 million above and beyond the savings they’ve already identified this year.
The savings does not come without a price. After the review, it was also decided that 150 administrative positions would be eliminated. This amounts to a 2.3% reduction in personnel. Austrian will have 6170 employees after these actions are taken. Austrian however is working with the “Works Council” to help those that will be affected by the job cuts.
The cuts do not come as a surprise since Austrian was aware of a fair amount of duplicity between the operations of Tyrolean Airways and Austrian. The biggest change will be that Tyrolean’s flight control operations will be merged with Austrian’s in Vienna, and all flight administration operations will be based in beautiful Innsbruck. Additionally, technical maintenance will be consolidated to Tyrolean since they technically hold the Air Operator Certificate that is required for an airline to function.
In the press release by Austrian today, CEO Jaan Albrecht added that “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.”