• Negotiated solution with the works council fails to reach successful conclusion
• CEO Albrecht: “Time has come to create clarity”

The Executive Board of Austrian Airlines today decided to transfer the company’s flight operations to its subsidiary, Tyrolean Airways. That means the company’s full flight operations, which includes a fleet of around 80 aircraft and 2,100 members of staff, will be pooled in the 100 percent-owned subsidiary Tyrolean from 1st July 2012 onwards. The Executive Board views this as a measure which will secure the future of Austrian Airlines, as the step will result in automatic salary increases being abolished, and a modern collective agreement introduced.

Although the decision was preceded by negotiations over the past two weeks, it proved impossible to reach agreement over principles. A meeting with the works council of the flight personnel today also showed that there is no longer any chance of achieving a positive vote amongst staff.

Austrian Airlines CEO Jaan Albrecht said the following: “What our staff need now is clarity. I remain convinced that this path offers us a perspective for the future. And we want to design this future together with the entire Austrian Airlines crew.”

Joint flight operations by Austrian Airlines and Tyrolean
A project organisation consisting of experts and managers from both companies has already been formed to carry out the integration work. The aim of the working groups is to organise joint flight operations without any duplication of efforts by the end of 2012. Both locations, Vienna and Innsbruck, are part of the future concept in all cases.

The transfer of flight operations will change nothing for the customer: the Austrian Airlines brand will remain Austrian Airlines, serving around 130 destinations worldwide. For the employees of Austrian Airlines flight operations, who are 600 pilots and 1,500 flight attendants, nothing will change in terms of daily work or salary.

AUA 30/04/2012

Austrian Airlines Traffic Result April: Passenger growth by 9.9 percent
• 985,000 passengers carried – increase by 9.9 percent
• Passenger load factor improved by 5.9 percentage points

Austrian Airlines carried 985,000 passengers in April 2012 which is equivalent to a passenger increase of 9.9 percent in comparison to April last year. The average passenger load factor, at 76.7 percent, was 5.9 percentage points over the figure for the same month last year. The capacity measured in available seat kilometres (ASK) rose by 1.5 percent. The figure for revenue passenger kilometres (RPK) rose by 10 percent.

In the period from January to April 2012, the number of passengers carried rose by 10.2 percent compared to previous year’s figure: 3,338,100 passengers flew with Austrian Airlines. The load factor rose by 3.2 percentage points to 72.3 percent. The capacity measured in available seat kilometres (ASK) rose by 5.1 percent. The figure for revenue passenger kilometres (RPK) rose by 9.9 percent.

Austrian Airlines CCO Karsten Benz: “The strong growth in passenger numbers clearly confirm us on our track. Our goal is to lead Austrian Airlines into a successful future. We therefore must continue to focus on our company reform program.”

Europe
In April 2012, around 808,500 passengers flew with Austrian Airlines within Europe. This is 11.6 percent more passengers than last year. The load factor grew by 4 percentage points to 74 percent. Austrian Airlines increased the ASK by 4.4 percent, the RPK rose by 10.4 percent.

In the period from January to April 2012, around 2.7 million passengers flew with Austrian Airlines within Europe. This is 11.7 percent more than last year. The load factor rose by 3 percentage points to 68.6 percent. The figure for ASK rose by 6.7 percent, and the one for RPK by 11.6 percent.

Intercontinental
In April 2012, the number of passengers carried on intercontinental flights rose by 7.1 percent to 144,600. The load factor, which is 79.2 percent, was 8.1 percentage points over the figure of the previous year. Austrian Airlines increased its ASK by 0.2 percent. The figure for RPK rose by 11.7 percent.

Austrian Airlines carried more than 511,500 passengers in the period from January to April 2012, or 4 percent more than last year despite the crisis in the Middle East. The load factor rose by 3.7 percentage points to 75.4 percent. Austrian Airlines increased its ASK by 3.3 percent. The figure for RPK rose by 8.7 percent.

Charter
In April 2012, passenger volume stood at 31,900 which is 13.8 percent less than previous year. The load factor rose by 1.1 percentage points to 75 percent. Austrian Airlines reduced the ASK by 12.9 percent. The figure for RPK fell by 11.6 percent.

In the period from January to April 2012, Austrian Airlines carried 114,400 passengers in the Charter segment. This figure is 4.8 percent more than last year. The load factor fell by 0.3 percentage points to 74.1 percent. The figure for ASK rose by 10.6 percent, while the one for RPK rose by 10.2 percent.

AUA 10/05/2012

Austrian Airlines Traffic Result March: Passenger all-time-record in both March and first Quarter

• March: 893,600 passengers carried – increase by 12 percent
• January to March: 2.3 million passengers carried – increase by 10.1 percent

Austrian Airlines carried 893,600 passengers in March 2012. In spite of the crisis in the Middle East and with two aircraft less in their fleet, Austrian Airlines has had a passenger increase of 12 percent in comparison to March last year. The average passenger load factor, at 73.6 percent, was 3.5 percentage points over the figure for the same month last year. The capacity measured in available seat kilometres (ASK) rose by 9.4 percent. The figure for revenue passenger kilometres (RPK) rose by 14.9 percent.

In the period from January to March 2012, the number of passengers carried rose by 10.1 percent compared to previous year’s figure: 2,349,900 passengers flew with Austrian Airlines. This is an all–time–record in passenger numbers. The load factor rose by 2.1 percentage points to 70.6 percent. The capacity measured in available seat kilometres (ASK) rose by 6.4 percent. The figure for revenue passenger kilometres (RPK) rose by 9.8 percent.

Austrian Airlines CEO Jaan Albrecht: “The strong growth in passenger numbers shows clearly that we are on track. Despite the difficult times, our employees are proving to be in top form. Unfortunately, this is also true for the fees and the costs for kerosene: We had to carry additional 28 million Euro out of these titles in the first quarter. We therefore must continue to focus on our company reform program.”

Europe
In March 2012, around 724,000 passengers flew with Austrian Airlines within Europe. This is 11.2 percent more passengers than last year. The load factor grew by 1.4 percentage points to 68.9 percent. Austrian Airlines increased the ASK by 8.4 percent, the RPK rose by 10.7 percent.

In the period from January to March 2012, around 1.9 million passengers flew with Austrian Airlines within Europe. This is 11.5 percent more than last year. The load factor rose by 2.5 percentage points to 66.3 percent. The figure for ASK rose by 7.6 percent, and the one for RPK by 11.8 percent.

Intercontinental
In March 2012, the number of passengers carried on intercontinental flights rose by 10.9 percent to 137.900. The load factor, which is 77.5 percent, was 5.6 percentage points over the figure of the previous year. Austrian Airlines increased its ASK by 8.1 percent. The figure for RPK rose by 16.5 percent.

Austrian Airlines carried more than 366,700 passengers in the period from January to March 2012, or 2.8 percent more than last year despite the crisis in the Middle East. The load factor rose by 2.1 percentage points to 74 percent. Austrian Airlines increased its ASK by 4.4 percent. The figure for RPK rose by 7.5 percent.

Charter
In March 2012, passenger volume stood at 31,700 which is 43.9 percent up the previous year. The load factor fell slightly by 0.2 percentage points to 74.8 percent. Austrian Airlines increased the ASK by 42.4 percent. The figure for RPK rose by 42 percent.

In the period from January to March 2012, Austrian Airlines carried 82,400 passengers in the Charter segment. This figure is 14.2 percent more than last year. The load factor fell by 0.8 percentage points to 73.9 percent. The figure for ASK rose by 22.2 percent, while the one for RPK rose by 20.8 percent.

AUA 12.04.2012

• Lufthansa authorises capital injection of up to 140 million euros
• Work Programme gets green light on all committees
• More than 200 million euros for new aircraft and new cabin

Austrian Airlines was last night given the green light from Frankfurt for the Work Programme it presented in January. Parent company Lufthansa will support Austrian Airlines with a conditions-based capital increase of up to 140 million euros. The funds will be used to prepare the harmonisation of the medium-haul fleet and the consequent restructuring. As a part of this, a transition of the flying staff of Austrian Airlines to the collective agreements of Tyrolean Airways might take place. Nothing will change for the customer as a result: Austrian Airlines will also continue to be called Austrian Airlines after the restructuring phase, operating a fleet of 80 aircraft to 130 destinations worldwide. It is planned to convert the cabin of the company’s entire long-haul fleet of 10 aircraft over the winter. In total, 200 million euros will be invested over the next two years.

Austrian CEO Jaan Albrecht said the following: “We now have the capital needed to implement our plan. Austrian Airlines will continue to be the largest domestic airline, but in a more modern and competitive setting. Its new costs structure will provide the basis for further growth in the Lufthansa Group.”

An overview of the Work Programme:
In the past 8 weeks, a total of around 180 million euros in cost reductions or revenue increases has been identified. These include new agreements with partners, an adjusted route network and harmonization of the fleet. Most recently, there has also been confirmation from our politicians that location-related costs in Vienna will be reduced. These include reduction of the tax on flight tickets and the stockpiling of oil, as well as a new fare model with Vienna Airport. A better approach flight route into Vienna is also to be worked out in a working group with AustroControl. Charges for the licensing of pilots are to be reviewed again this year. With the help of a transition to group subsidiary Tyrolean, additional funds can be raised.

• Route network and fleet harmonisation: A new route network plan with a strategic orientation to our home market of Austria and strong Eastern European markets has been developed. In future, Austrian will fly to Sofia, Bucharest and Belgrade more often. A larger aircraft is to be deployed on the route to Tel Aviv. The routes to Gothenburg, Sochi and Donetsk will be cancelled. Austrian Airlines will increase the flights to London and Barcelona as well as intra-Austrian flights to Klagenfurt and Linz.

Preparations have been made for the removal from the fleet of eleven medium-haul aircraft of the type Boeing 737 and acquisition of seven mid-range Airbus A320 family. This would mean Austrian Airlines will have harmonized mid-range fleet of 29 Airbus. Retraining of the pilots will begin in March.

Starting in autumn, it is planned to completely convert the cabins of the 10 aircraft that make up Austrian’s long-haul fleet, adding new seats and an inflight entertainment system.

• Location: An agreement has been reached with Vienna Airport to secure the companies’ common future by strengthening transfer traffic and long-haul development. In total, the Vienna hub and long-haul product at the location should continue being built up. Good preconditions have also been created for doing this with the new Skylink Terminal, which will open its doors in June 2012. In the field of handling, too, potential savings have been identified, and the framework conditions for a longer-term agreement defined.

• Costs and revenues: By extending contracts and creating more favourable conditions for office items, building maintenance and car fleet reduction, substantial amounts running into millions of euros will be saved in the field of administration. On the revenue side, meanwhile, a range of measures is planned, including expansion of corporate customer business by means of cooperations with the Lufthansa Group.

• Staffing: Despite highly intensive and fair negotiations, it proved impossible to reach an agreement over the “Modernisation of Collective Agreements” work package for the flying staff. The measures discussed would not themselves have been sufficient to stop the automatic increase in costs from seven percent a year irrespective of the economic trend and success of the company. A transition is now being prepared to the subsidiary Tyrolean. With its cost level, Tyrolean offers a sustainable, forward-looking and competitive foundation.

AUA 15/03/2012

Austrian Airlines Traffic Result for January 2012: 7.1 percent increase in Passenger Volume

Strong growth in European traffic: 10.9 percent growth

Austrian Airlines carried 737,400 passengers in January 2012 which is by 7.1 percent more compared to January 2011. The average passenger load factor, at 68 percent, was 0.8 percentage points above the figure for the same month last year. The capacity measured in available seat kilometres (ASK) rose by 3.5 percent. The figure for revenue passenger kilometres (RPK) rose by 4.8 percent.

Austrian Airlines CEO Jaan Albrecht: „The figures show clearly that we are on a good path. In particular, we had a strong growth on the flights from and to Central Eastern Europe”. For example, Austrian Airlines carried 39 percent more passengers on the route Vienna-Bucharest in January 2012 compared to January 2011.

Europe
In January, around 597,600 passengers flew with Austrian Airlines within Europe. This is 10.6 percent more passengers than last year. The load factor grew by 3.4 percentage points to 64.8 percent. Austrian Airlines increased the ASK by 5 percent, the RPK rose by 10.8 percent.

Intercontinental
In January, the number of passengers carried on intercontinental flights fell by 3.1 percent to 118,000. The crisis in the Middle East is having an effect here. The load factor, which is 70.5 percent, was 1.1 percentage points below the figure of the previous year. Austrian Airlines increased its ASK by 3.2 percent. The figure for RPK rose by 1.6 percent.

Charter
As a result of the capacity restriction set by the EU, Austrian Airlines reduced its ASK in the charter business segment. Passenger volume was 21,800, which is 16.9 percent less than the previous year. The load factor stood almost constant at 70.7 (0.1 percentage points less than the figure last year). Austrian Airlines reduced the ASK by 8.2 percent. The figure for RPK fell by 8.4 percent.

AUA 9/02/2012