Don't miss

Replay


LATEST SHOWS

ENCORE!

The highs and lows of Cannes for the critics

Read more

EYE ON AFRICA

Remembering our friend and colleague Jean Karim Fall

Read more

MEDIAWATCH

Bad diplomacy, brawls & bromance

Read more

ENCORE!

Cannes 2017: Pitch Perfect's Brittany Snow becomes an urban warrior

Read more

THE WORLD THIS WEEK

US President wraps up world tour in Italy (Part 1)

Read more

THE WORLD THIS WEEK

US President wraps up world tour in Italy (Part 2)

Read more

FOCUS

The battle against illegal fishing in West Africa

Read more

DOWN TO EARTH

Trump has already quit the Paris climate deal - just not publicly

Read more

#TECH 24

The Ice Memory Project: A treasure trove for future scientists

Read more

Business

Austrian Airlines to cut 1,000 jobs

Text by NEWS WIRES

Latest update : 2009-07-02

Austrian Airlines will cut 1,000 jobs following record losses in 2008. The airline reported a net loss of 429.5 million euros last year, a record slump.

AFP - Austrian Airlines said Thursday it would cut 1,000 jobs following record losses in 2008 and amid a troubled bid by German flag carrier Lufthansa to take over the company.
   
A restructuring drive aimed at creating a more efficient company "will also result in downsizing at the company, with some 1,000 posts to be cut by mid-2010," the firm said in a statement.
   
AUA currently has around 8,000 employees after cutting hundreds of jobs over the past three years as part of a cost-cutting drive.
   
The Austrian airline has debts of 225 million euros (315 million dollars) and reported a net loss of 429.5 million euros last year -- a record slump.
   
AUA chief commercial officer Andreas Bierwirth and chief operations officer Peter Malanik said the economic crisis had shown "just how important it is that the company be restructured if it is to be well-positioned for the future."
   
AUA is in the process of being taken over by Lufthansa but the deal hit a snag on Wednesday when the European Commission said it would open an in-depth investigation into the takeover because of fears over anti-trust issues.
   
Competition Commissioner Neelie Kroes said the deal could lead to higher ticket prices for passengers and fewer flights on some routes.
   
Lufthansa said it was surprised by the decision but still confident that EU competition authorities would eventually approve the deal.
   
Analysts say the probe threatens the whole deal since Lufthansa could pull out if there is no approval by July 31.
   
 

Date created : 2009-07-02

COMMENT(S)