Airline Code [AUA]
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Tags :Continental Europe, Austrian Airlines
Summarising the position of the company over the past twelve months, member of the Austrian Executive Board, Dr. Peter Malanik made the following statement (13-Mar-09): “2008 was an extraordinarily difficult year for the Austrian Airlines Group.
"While our prospects gave us good reason to be optimistic in the early months of the year, the situation worsened rapidly due to the extremly high price of fuel, which was quickly followed by a dramatic fall in the volume of bookings due to the world financial and economic crisis. With the signature of the contracts governing the sale to Deutsche Lufthansa AG of ÖIAG’s 41.56% share in Austrian Airlines AG on 05-Dec-08, an important step was taken towards ensuring the long-term future of the Austrian Airlines Group. The transaction remains subject to approval in accordance with the Competition and Funding Guidelines of the European Commission.”
Member of the Austrian Executive Board, Dr. Andreas Bierwirth said the following about the Annual Result 2008: “The business trend of the Austrian Airlines Group was decisively shaped in 2008 by the markedly negative economic environment around the world. Cripplingly high fuel prices and rapidly falling demand for flights due to the economic slump had an unmistakable impact on our result from the fourth quarter onwards. Despite this challenging economic environment, we have stuck consistently to our Focus East strategy, continuing to expand our key markets in Central and Eastern Europe and the Middle East, introducing the innovative Premium Service into the Middle East, and implementing numerous improvements in our quality and service. In this way, we have succeeded in holding passenger volume relatively stable at 10.7 million passengers carried despite the challenging economic environment, ensuring that flight revenue, at EUR 2,361.0 million, was only slightly down on the previous year. Despite this, a number of factors – most notably the 31.5% jump in fuel expenditure –produced a fall in our EBIT from operating activities, to EUR –312.1 million. The EBIT adjusted for one-off effects stood at EUR –35.2 million, again below last year’s figure. One-off effects not having an effect on payment, the majority of which were based on depreciation of aircraft, produced a significant burden totalling EUR 334.4 million. Consequently, the Group recorded an annual result after taxes of EUR – 429.5 million.”
The two men went on to remark: “Even before the magnitude of the present crisis became clear, we realised that countermeasures of an operational nature would not be sufficient. This is why we put together the most fundamental change in strategy the company has seen in recent decades, and recommended to our majority shareholder ÖIAG that a privatisation process be instigated, and that the company be sold to a strategic partner.” (c) Centre for Asia Pacific Aviation. Date posted: 16-Mar-09
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Financial crisis puts strain on Austrian Airlines' 2008 annual result 
