Lufthansa will launch new cost cuts at unit Austrian Airlines (AUA) as early as January to bring it back into profit in 2012, the chief executive of its German parent told Austrian radio on Wednesday.
“The AUA is far away from profitability and next year, many expect a bad year for aviation,” Christoph Franz told ORF’s Morgenjournal.
AUA therefore needs fresh money injections, but these will flow only if all stakeholders contribute more, he said.
Franz spoke to ORF while attending an airline event in the Ethiopian capital Addis Abbeba.
AUA should have “competitive framework conditions” in its home market, including lower costs at Vienna airport, which the Austrian government had promised at the time Lufthansa bought AUA in 2009, but which have not yet been delivered, he said.
The Austrian airline has been hit harder than expected by unrest in North Africa, the Japan crisis, rising fuels costs and tough competition.
Jaan Albrecht, whom Lufthansa in November installed as new CEO for the Austrian unit, in the same clip was asked where the savings would be targeted. “Everywhere,” he replied, but declined to give details.
He stressed he would seek a cooperative course including the unions.