Austrian Airlines to pool flight operations within Tyrolean

• Negotiated solution with the works council fails to reach successful conclusion
• CEO Albrecht: "Time has come to create clarity"

The Executive Board of Austrian Airlines today decided to transfer the company's flight operations to its subsidiary, Tyrolean Airways. That means the company's full flight operations, which includes a fleet of around 80 aircraft and 2,100 members of staff, will be pooled in the 100 percent-owned subsidiary Tyrolean from 1st July 2012 onwards. The Executive Board views this as a measure which will secure the future of Austrian Airlines, as the step will result in automatic salary increases being abolished, and a modern collective agreement introduced.

Although the decision was preceded by negotiations over the past two weeks, it proved impossible to reach agreement over principles. A meeting with the works council of the flight personnel today also showed that there is no longer any chance of achieving a positive vote amongst staff.

Austrian Airlines CEO Jaan Albrecht said the following: "What our staff need now is clarity. I remain convinced that this path offers us a perspective for the future. And we want to design this future together with the entire Austrian Airlines crew."

Joint flight operations by Austrian Airlines and Tyrolean
A project organisation consisting of experts and managers from both companies has already been formed to carry out the integration work. The aim of the working groups is to organise joint flight operations without any duplication of efforts by the end of 2012. Both locations, Vienna and Innsbruck, are part of the future concept in all cases.

The transfer of flight operations will change nothing for the customer: the Austrian Airlines brand will remain Austrian Airlines, serving around 130 destinations worldwide. For the employees of Austrian Airlines flight operations, who are 600 pilots and 1,500 flight attendants, nothing will change in terms of daily work or salary.