newstodate.aero
APR 04, 2003 (newstodate): Austrian Airlines has announced its decision to make a lasting cost reduction of five percent across the Austrian Airlines Group for the full year 2003, corresponding to savings of around EUR 40 million.
Austrian points to the current situation in international aviation and the dramatic falls in demand suffered by the industry due to the crisis in Iraq as the reason for the costs cut.
Overall production was reduced by 11% in April, while app. 10% of scheduled flights will be removed from the programme in May. This temporary adjustment in production will generate an additional 10% reduction in costs, producing further savings of EUR 20 million, the company says.
As a result, four aircraft will be grounded until further notice, and around 150 jobs will be axed.
Austrian points to the current situation in international aviation and the dramatic falls in demand suffered by the industry due to the crisis in Iraq as the reason for the costs cut.
Overall production was reduced by 11% in April, while app. 10% of scheduled flights will be removed from the programme in May. This temporary adjustment in production will generate an additional 10% reduction in costs, producing further savings of EUR 20 million, the company says.
As a result, four aircraft will be grounded until further notice, and around 150 jobs will be axed.