NYCVIE
Topic Author
Posts: 141
Joined: Mon Jul 04, 2016 11:01 pm

How is Austrian Airlines doing?

Mon Dec 24, 2018 6:52 pm

Hi all,

I was wondering how OS is doing these days, particularly with the heavy increased competition from the LCCs (Lauda, Level, Wizz, Vueling)? Are they holding their own against the competition? Any plans for expansion?

I also remember seeing some posts about the LH Group planning to transfer OS operations to Eurowings in the long-term, similar to the proposed plan with Brussels Airlines. Any insight on this?
 
deltatrav
Posts: 14
Joined: Tue Oct 02, 2018 6:33 pm

Re: How is Austrian Airlines doing?

Mon Dec 24, 2018 9:23 pm

Only speaking from personal experience, flew last summer USA-VIE-Swiss and they were fantastic. both flights nearly entirely full (business 100% packed). Fantastic crew. Gem of an airline. Anyone hear/know of them every contemplating re-starting Beirut?
 
NozPerry
Posts: 134
Joined: Tue Jun 30, 2015 12:12 am

Re: How is Austrian Airlines doing?

Mon Dec 24, 2018 11:27 pm

Flew them a few times this year on the 321 on the LHR-VIE-LHR, all 6/8 flights I did were full midweek. My friend just came back from Mauritius and the flight was full both sectors, only around 4 seats on the way out in Y and 5 on the way back.
I love the feel of a Go Around in the morning
 
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American 767
Posts: 4441
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Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 12:09 am

I am curious to see if they will pick the 787-9 for long haul flights for 767 and 777 replacement. Yes one would argue that they could very well choose the A330NEO over the 787, or the A350, because they are wholly owned by LH, as LX and SN are, but unlike LX and SN, OS has flown the 767 and the 777 so they are more likely to stock to Boeing. I am not saying they will buy the 787 but if they ever do I won't be surprised, it would suit them well on routes like VIE-HND, VIE-SFO , VIE-CPT and VIE-ICN just to name a few that could be possible.
Ben Soriano
 
B747forever
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Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 7:50 am

American 767 wrote:
I am curious to see if they will pick the 787-9 for long haul flights for 767 and 777 replacement. Yes one would argue that they could very well choose the A330NEO over the 787, or the A350, because they are wholly owned by LH, as LX and SN are, but unlike LX and SN, OS has flown the 767 and the 777 so they are more likely to stock to Boeing. I am not saying they will buy the 787 but if they ever do I won't be surprised, it would suit them well on routes like VIE-HND, VIE-SFO , VIE-CPT and VIE-ICN just to name a few that could be possible.


Unfortunately, OS and SN are the ugly stepchildren in the LH group. Their long haul fleets are made up of old frames, and I doubt they will get brand new 787s anytime soon.
Work Hard, Fly Right
 
aviationaware
Posts: 2815
Joined: Mon May 19, 2014 12:02 pm

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 9:52 am

They're not the ugly stepchildren, they are the kids that are underperforming in school and aren't getting a new iPad as a reward like their siblings. Big difference.
 
Kilopond
Posts: 469
Joined: Wed Jun 15, 2016 10:08 am

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 10:57 am

Financially they were doing slightly worse recently. But mainly due to depreciations and amortizations.
For the first 9 months of 2018 (compared to the same period 2017):

revenue (-8%)
expenses (-7%)
EBITDA (-7%)
EBIT (-13%) down to 92 million EUR.

https://investor-relations.lufthansagro ... 18-3-e.pdf
 
tommy1808
Posts: 10872
Joined: Thu Nov 21, 2013 3:24 pm

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 2:25 pm

B747forever wrote:

Unfortunately, OS and SN are the ugly stepchildren in the LH group. Their long haul fleets are made up of old frames, and I doubt they will get brand new 787s anytime soon.


They can get those when they have a plausible plan to pay for them. If the current fleet wears out before they can show that, OS may very well and up without long haul.

That being said, nice airline to fly with long haul, staff is friendly, food is good.

Best regards
Thomas
This Singature is a safe space......
 
VSMUT
Posts: 3043
Joined: Mon Aug 08, 2016 11:40 am

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 2:49 pm

American 767 wrote:
I am curious to see if they will pick the 787-9 for long haul flights for 767 and 777 replacement. Yes one would argue that they could very well choose the A330NEO over the 787, or the A350, because they are wholly owned by LH, as LX and SN are, but unlike LX and SN, OS has flown the 767 and the 777 so they are more likely to stock to Boeing. I am not saying they will buy the 787 but if they ever do I won't be surprised, it would suit them well on routes like VIE-HND, VIE-SFO , VIE-CPT and VIE-ICN just to name a few that could be possible.



IMHO, I wouldn't expect anything other than second-hand or hand-me-down A330s or 777-200s. That tends to be the Lufthansa strategy for underperforming daughter companies.

If they manage to turn around, a factory-new replacement would be part of a combined order for the entire LH group.
 
devron
Posts: 318
Joined: Wed Apr 20, 2011 11:56 am

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 4:19 pm

Why does austrian have a decline in the revenue? Is this the competition?
 
LUKAS10
Posts: 31
Joined: Fri Sep 21, 2018 4:54 pm

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 7:41 pm

Considering the fact Austrian will be fully integrated into Eurowings, talking about other aircraft type than A330 makes no sense.
 
Kilopond
Posts: 469
Joined: Wed Jun 15, 2016 10:08 am

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 8:34 pm

devron wrote:
Why does austrian have a decline in the revenue? Is this the competition?


That's definitely the case: passenger numbers have increased and so have the number of flights and the load factor. But ticket prices have come down.

However, considering the dimenion of the Viennese bloodbath I would still say OS is doing OK-ish.
 
fraT
Posts: 1100
Joined: Wed Oct 01, 2003 4:32 am

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 8:48 pm

LUKAS10 wrote:
Considering the fact Austrian will be fully integrated into Eurowings, talking about other aircraft type than A330 makes no sense.


Any proof for your "facts"?
In contrast to SN, there are no plans to integrate OS into EW.
 
DUSZRH
Posts: 154
Joined: Thu Jan 05, 2017 12:17 am

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 9:07 pm

devron wrote:
Why does austrian have a decline in the revenue? Is this the competition?



It's the new IFRS Accounting standard. Fees which are handed through (like airport charges) are not included in Revenues and costs anymore. That's why most European airlines will report lower revenue figures this year.

I think it was plus 5% if reported by the old standards. Passenger numbers are up by 10%, yields are a bit down, as can be seen by the tad lower EBIT. So far the LCCs are mostly running against each other.
 
GRJGeorge
Posts: 369
Joined: Wed Nov 26, 2014 3:37 pm

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 9:46 pm

Any indication how the VIE-CPT flights are doing?
It seems as if some extra flights are being flown on the route, as it's only scheduled for 2 x weekly, however I'm sure I noticed a flight operating yesterday 24th on a Monday...anyone knows if this is once-off extra, or for a longer period?
 
stylo777
Posts: 2705
Joined: Mon Feb 13, 2006 7:32 pm

Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 11:14 pm

Please get your facts straight:
- there aren't any plans to integrate OS to "EW Group"; OS is and remains within the LH Group 4-hub strategy besides LH and LX
- no longhaul aircraft on order ufn. as any new 787/350 or anything else would put them into financial burden and could even lead to bankcrupcy (yeah, a bit exagerrated but said by LHG VP's)
- their longhaul aircraft gets refurbished to new business class and will also cater for premium economy
- although the big expansion of LCC's at VIE continues, they performed well this year with higher LF's and Revenues. Remember seeing them carrying almost 1mio pax in Oct.

All in all, I would say it's ok taking into consideration that they don't have the exclusivity of a high premium market like LX or a strong dual-hub system like mama LH; add to this the huge LCC variety...
 
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3BNBE
Posts: 84
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Re: How is Austrian Airlines doing?

Tue Dec 25, 2018 11:41 pm

NozPerry wrote:
My friend just came back from Mauritius and the flight was full both sectors, only around 4 seats on the way out in Y and 5 on the way back.

Austrian Airlines not only offers a non-stop service for the 2500 monthly tourists visiting Mauritius from Austria during Northern Winter but also provides nice connections at cheaper prices than other carriers from MRU to Europe and vice--versa, which can account for the high load factor. OS operates only 2 weekly flights though(in complement of LH's 3 weekly from FRA, WK's 2 weekly from ZRH and EW's 1 weekly flight from MUC, in addition to bi-weekly charter flights from DUS), with a 3rd flight during Christmas/New Year. Doesn't Mauritius have the potential for a year long flight to be operated by OS?(Edelweiss having just done so). Austrian Airlines can ensure a greater presence of LH group on the island, as Germany has just 3 weekly flights(operated by Condor)from April to September, with however more than 55,000 passengers one-way during that period, in addition to the weekly flight of EW and the Austrain market is unserved during that period.
Also, any indication of how OS is doing in the Seychelles?
 
stylo777
Posts: 2705
Joined: Mon Feb 13, 2006 7:32 pm

Re: How is Austrian Airlines doing?

Wed Dec 26, 2018 1:54 am

I guess, it's the perfect mixture for MRU among (almost) all LHGroup airlines. Putting a daily 763/772 from VIE will ultimatively cut into other more yielding routes; therefore, the low frequency.

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