Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

UK Foreign Secretary victim of Russian prank phone call

Read more

THE DEBATE

After Iran, North Korea: Trump scraps summit, Macron and Putin react

Read more

FOCUS

Training future football champions in Vietnam

Read more

ENCORE!

Guitar Hero: Johnny Marr brings solo work to the stage in Paris

Read more

THE INTERVIEW

Presidential meeting signals 'another chapter' in Franco-Rwandan relations

Read more

THE DEBATE

Macron courts tech giants during Paris summit

Read more

PEOPLE & PROFIT

Trade truce: US-China tensions cool, but is a trade war still possible?

Read more

BUSINESS DAILY

Viva Technology conference opens in Paris as Macron seeks French dominance

Read more

IN THE PRESS

Does the NFL's new ultimatum on kneeling pander to Donald Trump?

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)