First effects

New jets at AUA wobble due to wage dispute

AUA wanted to invest three billion euros in a modern fleet. This is now questionable.(Bild: APA/Robert Jäger)

Following the on-board staff's rejection of AUA's wage offer, there are currently no further official negotiations. There is now a threat of further strikes and, conversely, the Executive Board is reviewing the investment program in new aircraft of almost three billion euros by 2028. Instead of expansion, there is a threat of shrinkage.

Following the result of the vote at the weekend, with 88% rejecting the AUA offer, the union and the Executive Board are not even in agreement as to whether or not they should continue talking to each other. At least there is no new strike threat yet. According to reports, the airline's management is likely to discuss the future of the airline.

AUA CEO Annette Mann has already announced that the business model would have to be put to the test if the deal is too high. Between the lines, this means shrinking instead of growing. Specifically, the long-haul fleet was to be converted from the old Boeing aircraft to modern 787 Dreamliners and even expanded by one aircraft to eleven.

At the same time, Airbus A320neo aircraft will be successively deployed on short and medium-haul routes to replace the existing aircraft - according to the plan from this March. It is clear that AUA cannot finance this alone, but needs the green light from its parent company Lufthansa. This approval is questionable if the personnel costs would make many AUA routes unprofitable.

The danger is that the Group would then prefer to deploy one of its other twelve subsidiaries there at the expense of Austro-Airline.