Management and works councils agree time-limited savings package
16-Jul-2009 |
The management of the Austrian Airlines Group today agreed a time-limited package of saving measures with all the Works Councils designed to help improve the competitiveness of the company. It has been agreed that personnel expenditure should be reduced by 5 per cent for a time-limited period from 2010 to 2015. Over this 6-year period, this will produce a total cost saving of 150 million euros, calculated by the cash value equivalent.
The details of the package are rapidly being negotiated by the social partners. It will not include any extra job cuts beyond the 1.000 posts already announced.
Management remains confident that the integration of the Austrian Airlines Group into Lufthansa will go ahead successfully. For this reason, it is currently doing everything within its power to ensure that the scenario can be commercially successful. Austrian Executive Board Members Dr. Peter Malanik and Dr. Andreas Bierwirth said the following: “This new savings measure means the Austrian Airlines Group is taking a key step towards ensuring that the company returns to profitability as quickly as possible in the coming years despite challenging market conditions. We would like to thank the Works Councils in particular for their constructive approach to negotiations. With the current agreement, all our employees are making a fundamentally important contribution to the successful restructuring of the Austrian Airlines Group.”
Please find further information concerning the disclosure according to §§ 24 and 25 Media Act on www.austrian.com
(c) Centre for Asia Pacific Aviation. Date posted: 16-Jul-09
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Management and works councils agree time-limited savings package 
