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Austrian In Financial Trouble?  
User currently offlineRJ100 From Switzerland, joined Nov 2000, 4121 posts, RR: 29
Posted (8 years 5 months 1 week 2 days 22 hours ago) and read 3658 times:

Several media reports indicate that Austrian Airlines has severe financial problems. It also seems that Lufthansa is looking at it quite relaxed and prepares for a takeover (like they have done it with Swiss).

Any thoughts on this one? How do you see Austrians future?

I for myself see Austrian taken over by LH. But I think that OS will see a good future, being the Star Alliance's specialist for Eastern Europe.

Regards,
RJ100


none
15 replies: All unread, jump to last
 
User currently offlineMaartenV From Netherlands, joined Aug 2005, 271 posts, RR: 0
Reply 1, posted (8 years 5 months 1 week 2 days 6 hours ago) and read 3499 times:

Maybe they can merge Austrian with Swiss. This way LH could create a strong airline to cover the eastern and southern parts of Europe, with nice hubs like VIE and ZRH.


Its all about supply and demand...
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 2, posted (8 years 5 months 1 week 2 days 6 hours ago) and read 3496 times:

Austrian Media : AUA Runs Out Of Cash.... (by Beaucaire May 27 2006 in Civil Aviation)


Please respect animals - don't eat them...
User currently onlinePanHAM From Germany, joined May 2005, 9565 posts, RR: 31
Reply 3, posted (8 years 5 months 1 week 2 days 6 hours ago) and read 3475 times:

A Swiss/Austrian merger is not possible until all third country traffic rights are negotiated by the EU (Switzerland has an agreement with the EU and would likely ride on the back of such treaties).

Sad to see that Austrian may loose it's independence. Their service is far superiuor than Lufthansas. LH just has to sit there and wait until the apple falls off the tree.



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently offlineRJ100 From Switzerland, joined Nov 2000, 4121 posts, RR: 29
Reply 4, posted (8 years 5 months 1 week 2 days 6 hours ago) and read 3458 times:

Quoting PanHAM (Reply 3):
LH just has to sit there and wait until the apple falls off the tree.

Exactly, Mr Mayrhuber several times said that they are just waiting and will be ready to take them over.
There's no reason why Lufthansa should buy them now- and pay for it while they can get it almost "for free" when OS runs out of money.

Regards,
RJ100



none
User currently offlineAleksandar From Serbia, joined Jul 2000, 3236 posts, RR: 32
Reply 5, posted (8 years 5 months 1 week 2 days 6 hours ago) and read 3440 times:

Somehow I'm not surprised with that. It seems that takeover of NG was a bit too much for OS especially having in mind the huge fleet differencies.


R-E-S-P-E-C-T
User currently offlineSlz396 From , joined Dec 1969, posts, RR:
Reply 6, posted (8 years 5 months 1 week 2 days 6 hours ago) and read 3433 times:

First LX
now apparently also OS
and mind you, SK is also not in a good financial health and could certainly do with some financial help from the German Flag Carrier.

I wonder:
Is LH going to actually BUY into all European Star alliance members?


User currently offlineRJ100 From Switzerland, joined Nov 2000, 4121 posts, RR: 29
Reply 7, posted (8 years 5 months 1 week 2 days 6 hours ago) and read 3406 times:

LH is just clever. The Swiss market is a good market (small but good) and OS's market is an excellent one (like Switzerland a limited home market but serving unique high yield destinations). LH will turn it profitable...and gain access to good markets.

Regards,
RJ100



none
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 8, posted (8 years 5 months 1 week 2 days 5 hours ago) and read 3385 times:

Personally I would not buy all of them,since the growth-markets are not Scandinavia or Austria but Middle East,Asia and the developping countries.
Morocco will see a tremendous growth of passengers -like Ukraine ,Croatia,Russia,China and India.
The populations of Austria and Scandianvia are just too small to become strategically interesting,while the air-traffic market seems saturated.
Counties like Croatia or Ukraine-although relatively small in terms of population, offer a much bigger growth -potential though.
All counties without major visa-hussle are interesting for airlines ...
Algeria has a big potential-for instance-but due to it's requirement for visas (unobtainable at the airport like in Gulf-counties or Lebanon..),has restricted potential for short-term touristic visitors from France or Spain.
AUA has a great renomé for service and friendlyness of their crews.Personally I prefer fliying on AUA than on LH- but that's not sufficient for the beancounters.VIE is a 3 Million population market - one third of Cairo or one fifth of Mumbai.....
I would rather invest in Turkish Airlines or a Chinese Airline than in AUA - sorry -that's despite all the love I carry for the austrians...

[Edited 2006-05-27 16:45:26]

[Edited 2006-05-27 16:46:08]


Please respect animals - don't eat them...
User currently offlineCgnnrw From Germany, joined May 2005, 1165 posts, RR: 2
Reply 9, posted (8 years 5 months 1 week 2 days 4 hours ago) and read 3259 times:

Quoting PanHAM (Reply 3):
Their service is far superiuor than Lufthansas.

If call paying EUR2,50 for a 0,25 bottle of water in economy after paying EUR 388 for a 65 minute flight to Vienna superior......

Quoting Aleksandar (Reply 5):
Somehow I'm not surprised with that. It seems that takeover of NG was a bit too much for OS especially having in mind the huge fleet differencies.

I agree. They really screwed over Niki Lauda and treated Tyrolean like an unwanted step-child.....Well, AUA reaps what they sew.....



A330 man.
User currently offlineLeskova From Germany, joined Oct 2003, 6075 posts, RR: 70
Reply 10, posted (8 years 5 months 1 week 2 days 3 hours ago) and read 3227 times:

Quoting Cgnnrw (Reply 9):
Quoting PanHAM (Reply 3):
Their service is far superiuor than Lufthansas.

If call paying EUR2,50 for a 0,25 bottle of water in economy after paying EUR 388 for a 65 minute flight to Vienna superior......

I've not had problems with getting a glass/cup of water for free on my recent flights on OS... and you can get tickets for much lower fares than €388...

Quoting Cgnnrw (Reply 9):
Quoting Aleksandar (Reply 5):
Somehow I'm not surprised with that. It seems that takeover of NG was a bit too much for OS especially having in mind the huge fleet differencies.

I agree. They really screwed over Niki Lauda and treated Tyrolean like an unwanted step-child.....Well, AUA reaps what they sew.....

Lauda primarily screwed himself and his airline - if he hadn't screwed up as much as he did, Lauda Air might still be independant.

Not sure if I'd like to see OS taken over by LH - just like with LX, it'll again be the purchase of a carrier that, except in size of the fleet and home-market, offers more than LH does.

But before I see OS either going down the drain, or even more downsized, or taken over by some other airline, I guess that LH is still the lesser of all evils available...



Smile - it confuses people!
User currently onlinePanHAM From Germany, joined May 2005, 9565 posts, RR: 31
Reply 11, posted (8 years 5 months 1 week 2 days 1 hour ago) and read 3121 times:

Quoting Cgnnrw (Reply 9):

If call paying EUR2,50 for a 0,25 bottle of water in economy after paying EUR 388 for a 65 minute flight to Vienna superior......

I was referring to the C service which indeed is far superior to the equivalent LH offers and as a German resident you can get about the C fares on OS which LH sells only to residents outside Germany.

Y fares are usually cheaper than LH's as well. If you have to pay for a drink, why not. Still saves money.



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently offlineBicoastal From , joined Dec 1969, posts, RR:
Reply 12, posted (8 years 5 months 1 week 1 day 22 hours ago) and read 3002 times:

Are we talking an imminent death watch for Austrian or is this going to be an Italian/Brazilian death watch which could go on for years? Alitalia and Varig are unfortunately still around despite predictions of imminent ruin. Maybe Austrian is a better investment with harder working and less combative unions than the other two.

User currently onlinePanHAM From Germany, joined May 2005, 9565 posts, RR: 31
Reply 13, posted (8 years 5 months 1 week 1 day 11 hours ago) and read 2830 times:

With the precedence set in Italy, the Austrian Government could easily put in some fresh money in form of equity.

The company knows what it has to do to shape things up and is on the road doing the right things. I'd say that they are in much better shape than their competitor on the southern side of the Alps.



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently offlineAleksandar From Serbia, joined Jul 2000, 3236 posts, RR: 32
Reply 14, posted (8 years 5 months 1 week 20 hours ago) and read 2611 times:

Quoting Cgnnrw (Reply 9):
They really screwed over Niki Lauda

From the moment AUA took over Lauda Air, they had no idea what to do with them. Now, from some distance, it looks as that takeover was more a matter of pride than the sound business move.



R-E-S-P-E-C-T
User currently offlineHAJFlyer From Switzerland, joined Sep 2005, 1473 posts, RR: 9
Reply 15, posted (8 years 5 months 1 week 7 hours ago) and read 2463 times:

Their CHF-denominated perpetual bond that is trading on the Swiss stock exchange has be relatively stable in the last few months; thus, at least a significant number of investors is convinced that AUA will make it.

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