COMPETITION FUELS AUSTRIAN AIRLINES DECISION TO SUSPEND AUSTRALIAN FLIGHTS
- Latest News
- Tuesday, 25 July 2006
The airline, which currently operates nine services a week - six to Sydney and three to Melbourne - has blamed the decision on rising kerosene (aviation jet fuel) prices and low yields brought about by strong competition from Mid-East based carriers. The move to suspend services on the Australia route came in a full review of long-haul services.
The airline has been battling increased fuel charges that added EUR72 million to operating costs in the first six months of 2006, forcing management to reassess its EBIT for the full year. On a brighter note Austrian still expects to report final figures for 2006 considerably better than the previous year.
The suspension of the rotation will also see flights to Singapore and Malaysia cease in 2007 as the airline moves to consolidate its European network services.
The decision by the Vienna-based carrier to quit the Australia route prompted a scramble among rival carriers for Austrian’s freight business.
Andy Vargoczky, manager for GSA Australia - Austrian’s general sales agent, said the decision by the airline to suspend services was disappointing but understandable in the current market climate. He said that Austrian Airlines Cargo would continue to maintain a high profile in Australia and has plans to continue with the transport of cargo from the marketplace through interline deals.
“Having worked both for Austrian Airlines and now the company that represents them in Australia I know that a lot of people have worked very hard in building the airline up to nine services a week,” he said.
“We intend to maintain and continue building those strong relationships and will be working with our customers to ensure a smooth transition to alternate arrangements when Austrian stops flying to Australia next year.”
