Austrian Airlines (AUA) talk to the federal government about state aid. An AUA spokesman denied to the Austria Press Agency that it should be about 500 million euros or more, as the Bloomberg news agency reported today. One is only at the beginning of the talks. He gave no numbers.
Bloomberg reports that the topics should include salaries and tax deferrals, and direct government participation is not an issue for the Treasury, the agency said, referring to those involved.
7000 employees in short-time work
Regular flight operations at the Lufthansa Group subsidiary are currently suspended until May 3, and the approximately 7,000 employees are on short-time work. The airline assumes that it will have a demand of only 25 to 50 percent in summer 2020 compared to 2019. “Austrian expects demand to drop significantly in 2021, and the ‘pre-corona level’ will probably not be reached before 2023 at the earliest,” said the AUA. Discussions have therefore already started with the government, the owner Lufthansa and the social partners.
Out for Germanwings
The changes include a downsizing of the fleet and a consequent restructuring. The extent to which this will happen has not yet been finally defined, the Lufthansa subsidiary assures. Another daughter, Germanwings, is hired. Capacities should be reduced and administration reduced in almost all of the Group’s flight operations, the company said on Tuesday. (apa, dpa, reu)
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