Austrian Airlines - strategic partnership recommended

Further result potential from internal optimisation and any additional potential based on a strategic partnership were examined.

The Management Board of Austrian Airlines AG presented a report containing the following results to the Supervisory Board.

CEO of Austrian, Alfred Ötsch said, “From the company’s business point of view, there is a clear recommendation in favour of a strategic partnership. The key factors are that important parameters, such as economies of scale, purchasing synergies as well as improving the international sales strength and long-term financial stability, can only be met together with a strategic partner. Independently of this, a series of internal optimisation measures needs to be implemented by us; however, structural weaknesses can only be remedied by means of a partnership. In addition to synergies in expenses and profits, the strategic orientation could also be of immediate importance for a potential partner. Financial stability must also apply for the partner, regardless. After the order for privatisation has been given, the next steps will be undertaken by the owner”,

A stand-alone solution remains conceivable nevertheless. However, due to the difficult business environment (high cost of kerosene, global economic recession and aviation crisis), this option would necessitate drastic measures that surpass those steps required for company optimisation which have in part already been initiated by far. These measures would be introduced and implemented in accordance with developments in the airline sector, resulting in negative consequences which will also be clearly felt by the business location and the Viennese hub as well.

The Supervisory Board of Austrian Airlines AG has taken note of the report. The Supervisory Board of Österreichische Industrieholding AG (ÖIAG) will also meet to discuss the matter.

(c) Centre for Asia Pacific Aviation. Date posted: 29-Jul-08
 

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