LH Sale of Austrian Rumors

Discussion in 'Miles & More | Lufthansa, SWISS, Austrian/Partners' started by Lufthansa Flyer, Mar 2, 2012.  |  Print Topic

  1. Lufthansa Flyer
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    Lufthansa Flyer Gold Member

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    I give don't give good odds to this happening, but there is yet another rumor swirling about LH's stake in Austrian......

    EDIT: Apologies for the title, I inadvertently reference a sale of Austrian, which is not the case.

    AUA´s Insolvency Becomes More Probable
    Published: Yesterday 12:21 · (FriedlNews)
    [​IMG]
    German newspapers report that Lufthansa could establish a new Austrian airline company. AUA could be left then.
    [​IMG]
    As the restructuring process at AUA proves very difficult, the German holding company Lufthansa seems to lose its patience. The Austrian airline was taken over in 2009, after AUA already faced financial difficulties. Initially, Lufthansa planned to reach the turnaround of AUA in 2011. However, last year, AUA posted losses of € 64m.
    Above all, negotiations with AUA´s workforce are hard to conclude for AUA´s management. The collective agreements, which are said to be too expensive, were terminated in January. New agreements could not be reached yet. Anyway, a deep cut seems to be inevitable. After new agreements again failed last week, AUA´s CEO had to postpone the conclusion of the austerity package. The next supervisory board meeting will take place by mid-March.
    Now, Lufthansa is said to consider establishing a new Austrian airline company. “There are plans to let AUA fall and to create a new Austrian airline company based on the regional subsidiary Tyrolean.” Süddeutsche Zeitung writes. This model is already well-known at Lufthansa. Before, also the former Belgian airline Sabena became bankrupt and the new Brussels Airline was established based on the former Delta Air. The Swiss regional airline Crossair was re-named into “Swiss” after the insolvency of Swissair. The same model could be applied at AUA, as Tyrolean has a significantly cheaper collective agreement. Salaries of pilots at Tyrolean only reach 75% to 80% of AUA´s level.
    AUA´s CEO reaffirmed his warnings. As AUA is loss-making for seven years, a deep cut is essential, Albrecht underlined.
     
  2. TRAVELSIG
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    TRAVELSIG Gold Member

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    Hi 744- I actually see the opening of a newco similar to or based on Tyrolean with the failure of AUA as a distinct probability. Why don't you think this will happen?
     
  3. Lufthansa Flyer
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    Lufthansa Flyer Gold Member

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    I mis typed. I meant to say that I did not give to odds to an AUA sale by LH. I think the reorg will most likely happen. I was typing faster than I was thinking!
     
    TRAVELSIG likes this.

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