Austrian airlines (AUA) will have a plan for how it will survive the crisis within 10 days, as auditors are demanding to see a convincing business plan for the auditors. Negotiations have been taking place practically every day in attempts to agree on government support for the struggling airline. What seems clear is that the company’s workforce is in for a bumpy ride. AUA will attempt to maintain short-term work for as long as possible, but 1,110 jobs are expected to be shed by 2023 from the current total of 7,000 and wages are set to drop by 13 percent.
If the planned cost cuts cannot be realized, insolvency could follow. AUA’s CEO Alexis von Hoensbroech recently said that he wanted to save as many of the 7,000 jobs as possible. Practically all employees are currently on short-time work. For this year, flights from the end of June are expected but it’s unlikely that more than 25 percent of the original routes will be restored before autumn.
