The AUA workforce is currently fighting for more money, which is why 150 flights will be canceled on Friday. But before 2023, the airline will pay out more than 30 million euros in bonuses to employees, because profits increased from three to 127 million euros. This year they also want to pay that much – if the wage demands remain justified.
“This Friday alone will cost the AUA four million euros in lost income and compensation payments, in addition to the damage to trust,” said AUA boss Annette Mann. Although the works council canceled the announced meeting at short notice, it was no longer possible to rebook the 12,800 affected passengers.
Mann is now calling for the union and crew representatives on board to return to the negotiating table quickly, but a conclusion before Easter is currently uncertain. However: another working meeting has been announced for next Thursday. . .
Financially, there is a lot at stake for the AUA: the required salary increase of around 40% would have mathematically completely eaten up the previous year’s profits, and the AUA would have been in the red. By 2023 there was already at least 11% more money and the starting salaries of flight attendants were even increased by more than 20%. Management currently offers a base of 4.5% plus a surcharge for an extended term of the collective labor agreement and further profit sharing, which, just like in 2023, could amount to an average extra monthly salary for the current 6,121 employees.
At the same time, the AUA must invest heavily. In 2028 alone, three billion euros have been earmarked for new aircraft. There will be 11 modern Boeing 787 Dreamliners for long-haul routes, the medium-haul fleet will also be renewed and the lounges in Vienna-Schwechat will be renovated. At 5.4% of profit, the margin is below the Lufthansa Group average of 7.6%, so we must continue to grow. The 2023 result “must not remain a one-hit wonder,” Mann demands.
That worked well last year: the number of passengers increased by 24% to 13.9 million, almost to pre-Corona levels. The occupancy rate even reached a record high of almost 82%. In terms of regularity, AUA was the third best airline in Europe, with more than 84% of flights arriving on time. New this year is free Wi-Fi on the 787 jets to North America and on medium-haul routes, and catering will also be improved with Do&Co, management promises. Ticket prices are likely to stabilize – also due to the particularly high passenger share of low-cost airlines in Vienna (25%). Passenger revenues are therefore up to 60% lower than at Lufthansa’s other major airports.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
