May 6, 2020
At AUA (Austrian Airlines) the week after next must have a plan of how the airline will survive. Negotiations take place practically every day. Like many other airlines, government support is needed. Hard times are ahead for the workforce. Working as short as possible should be as long as possible. Nevertheless, 1,100 of the 7,000 jobs are to be cut by 2023, and fees will decrease by 13 percent.
The Supervisory Board of the Austrian Lufthansa subsidiary met until late in the evening on Wednesday. The management reported very extensively about the negotiations and the liquidity situation, it said after the APA meeting. The supervisory board had encouraged the management board to pursue its restart plan with all its might. The airline, which was hit hard by the corona crisis, wants to come out of the corona crisis shrunk by a quarter, supported by government grants and guarantees. At the same time, however, the board was asked today to prepare the company for “alternative scenarios”. What is reported to mean that the path would lead to orderly bankruptcy should planned cost cuts not be realized.
The AUA rescue is currently being negotiated until late into the day. The Republic is hoping for loan guarantees and capital. An average of 20 percent discounts are expected from the airport and Austro Control. The week after next, by May 18 at the latest, a business plan must be available that will also convince the auditors.