Austrian Airlines to cut staff and routes and phase out the Boeing 737s

Austrian Airlines Boeing 737-8Z9 WL OE-LNQ (msn 30421) ZRH (Rolf Wallner), originally uploaded by Airliners Gallery.

Austrian Airlines’ (Vienna) new CEO Jaan Albrecht said the company would reduce staff and cut some routes in the hope it can cut around $254 million in costs this year as it hopes to break even or make a profit in 2012.

Austrian had an operating loss of around $83 million in 2010 and is likely to report a similar loss for 2011 according to this report by Reuters.

The company also wants to phase out its former Lauda Air Boeing 737 fleet and concentrate on the Airbus A319 and A320 for its medium haul routes. Parent Lufthansa has told the carrier it will support this fleet adjustment if the loss-making carrier will make drastic cuts in costs.

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Copyright Photo: Rolf Wallner

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