Austrian Airlines must emerge from the health crisis smaller and more agile, according to a recent interview with CEO of the company, Alexis von Hoensbroech. " We can only count on ourselves to pull through. Our main shareholder Lufthansa no longer has the means to support us financially again. Nor does the Austrian government" explains Alexis von Hoensbroech in a recent video interview for Routes.
The disappearance of AirBerlin and its Austrian subsidiary Niki seemed to offer Austrian a free hand at its Vienna hub in 2017. However, the opposite happened, with the installation of three low-cost airline bases, those of Easyjet, Laudamotion (which became Lauda Europe on behalf of Ryanair) and Wizz Air. 2018 and 2019 have seen the capacity of low-cost airlines increase at a staggering rate. In 2018, low-cost airlines had a market share of 23.7%. One year later, it had risen to 32%. " Vienna had become the biggest low-cost battleground in Europe".recalls Alexis von Hoensbroech. Austrian Airlines emerged weakened and the pandemic has given rise to an urgent need for restructuring.
With the covid crisis and the grounding of aircraft for several weeks, Austrian has decided to drastically reduce its network and fleet. " This crisis has been an opportunity to rationalise and reduce our fleet. We have sold all our propeller planes, seven Airbus A319s and three long-haul Boeing 767s. far too old. We assume that it will take time for the market to return to pre-Covid levels. Our fleet will be reduced from 80 to 58 aircraft, representing a 20 % reduction in capacity." says the Managing Director.
Strengthening the Vienna hub
Other rationalisation measures include the closure of all bases outside Vienna. Last year the company had to make 650 people redundant. It is expected to reduce its workforce by a similar number by 2023. But one thing is certain. " Austrian Airlines will be a very different company after the crisis. The company will be more agile, more digital and more modern. And its long-haul hub will once again link Austria to the world" adds Alexis von Hoensbroech.
For this summer, the company is beginning a cautious ramp-up. " For the time being, demand is coming mainly from leisure markets. As a result, we expect to see a similar level of 100 % capacity in this segment as in the pre-Covid period. In total, we are putting 50 % of pre-Covid capacity on the market this summer." adds the Managing Director.
June and July will see the company ramp up its services to Italy, Greece and Spain.. A total of some thirty Mediterranean destinations. This winter, AUA will also be launching long-haul flights to Cancun, the Maldives and Mauritius. A return to Asia is envisaged in the longer term.
With the lifting of the compulsory quarantine for covid-negative passengers, more flights are expected to connect Vienna with major European cities.. The airline is still offering free rebooking until 31 July.
