The Austrian government has decided to rescue Austrian Airlines (AUA,) which is in financial trouble due to the corona virus crisis, including €300m in loan guarantees and tax relief worth €150m. Chancellor Sebastian Kurz told reporters that negotiations with AUA’s owner Lufthansa had concluded positively. He added that the government would be implementing ticket price reform and introducing a €30 tax one flights of less than 350 kilometers.
This would impact flights between Vienna and Salzburg, which will no longer be offered by AUA. Lufthansa is contributing €150m to AUA’s rescue plan and promised to leave the airline’s headquarters in Vienna for at least ten years.
