headlessmike
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Austrian Airlines announces strategy for coming years

Thu Jan 17, 2019 5:07 pm

Austrian Airlines has today presented their strategy for the coming years, which they call #DriveTo25. The biggest news is the closure/transfer of all bases outside of Vienna (i.e. Altenrhein, Graz, Innsbruck, Klagenfurt, Linz, and Salzburg), an expansion to the Airbus narrow body fleet, and the phasing out of all turboprop aircraft (i.e. Dash 8's).

Here is the full announcement:
https://www.austrianairlines.ag/Press/PressReleases/Press/2019/01/005.aspx?sc_lang=en&mode=%7b30999B4B-42D0-45A6-B671-FE5E3CB68ED8%7d
 
mxaxai
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Re: Austrian Airlines announces strategy for coming years

Thu Jan 17, 2019 5:41 pm

also note:
viewtopic.php?f=3&t=1412975

Since Eurowings & Lufthansa are supposed to fill the gap left by Austrians departure from secondary Austrian cities, I wonder if any of the Dash 8's will be moved to LH / Eurowings. Eurowings already flies the Dash 8 - actually operated by LGW but still - and I doubt that they have enough slack in their current fleet to cover that capacity.

Also interesting that they emphasize how jets can easily operate for over 30 years, IMO implying that they don't expect a 767 & 777 replacement too soon. It also seems that they need to improve profits to afford new jets, as opposed to boosting profits with new jets.
 
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fraspotter
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Re: Austrian Airlines announces strategy for coming years

Thu Jan 17, 2019 5:55 pm

mxaxai wrote:
also note:
viewtopic.php?f=3&t=1412975

Since Eurowings & Lufthansa are supposed to fill the gap left by Austrians departure from secondary Austrian cities, I wonder if any of the Dash 8's will be moved to LH / Eurowings. Eurowings already flies the Dash 8 - actually operated by LGW but still - and I doubt that they have enough slack in their current fleet to cover that capacity.

Also interesting that they emphasize how jets can easily operate for over 30 years, IMO implying that they don't expect a 767 & 777 replacement too soon. It also seems that they need to improve profits to afford new jets, as opposed to boosting profits with new jets.


Hand me downs from LH it is then. Maybe some of their 2nd hand A330s to bring them more in line with the rest of LH Group?
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mercure1
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Austrian to remove Q400 fleet; grow Airbus NB fleet

Thu Jan 17, 2019 6:06 pm

Austrian Airlines board of directors has announced it will withdraw its 18 Q400 turboprops by 2021 as part of plans to simplify its network, reduce complexity and decentralize its crew bases with single focus on "hub Vienna"

As part of this, company plans to put aside €200mil towards the acquisition of up to 10 used A320 family aircraft over the next 3-years.

Also with removal of Q400 fleet, OS will work closer with LH to integrate networks to link Austrian secondary markets (Graz, Innsbruck, Klagenfurt, Linz, Salzburg) better with Frankfurt and Düsseldorf for passenger traffic flow.

Lastly on the longhaul front, the company will maintain the status quo with 767-777 fleets, though it eventually seeks 12 new replacement aircraft of a single model, but OS must first become more profitable before such large investments can take place.


https://www.luchtvaartnieuws.nl/nieuws/ ... t-pensioen
https://www.upinthesky.nl/2019/01/17/vl ... rstevigen/
https://www.austrianwings.info/2019/01/ ... ie-flotte/
mercure f-wtcc
 
MIflyer12
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Re: Austrian to remove Q400 fleet; grow Airbus NB fleet

Thu Jan 17, 2019 6:29 pm

mercure1 wrote:
Also with removal of Q400 fleet, OS will work closer with LH to integrate networks to link Austrian secondary markets (Graz, Innsbruck, Klagenfurt, Linz, Salzburg) better with Frankfurt and Düsseldorf for passenger traffic flow.


Do you interpret that to mean they'll be de-emphasizing Graz, Innsbruck, Klagenfurt, Linz, Salzburg flows to VIE?
 
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janders
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Re: Austrian to remove Q400 fleet; grow Airbus NB fleet

Thu Jan 17, 2019 6:33 pm

What keeps hurting OS - being a legacy carrier and its cost structure in a world of LCC?

Funny to hear legacy carriers shopping for used frames as LCCs are buying the newest and greatest. Quite a turn of history.

On Q400s, guess their high relative seat cost can't be helping their case.
"We make war that we may live in peace." -- Aristotle
 
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LAXintl
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Re: Austrian to remove Q400 fleet; grow Airbus NB fleet

Thu Jan 17, 2019 6:38 pm

MIflyer12 wrote:
Do you interpret that to mean they'll be de-emphasizing Graz, Innsbruck, Klagenfurt, Linz, Salzburg flows to VIE?


I think what they mean is that with the removal of Q400s these secondary cities will lose some of their own direct Europe flights, so the desire is to build better connectivity and network options via DUS and FRA (in addition to existing VIE links).
From the desert to the sea, to all of Southern California
 
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ikolkyo
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Re: Austrian to remove Q400 fleet; grow Airbus NB fleet

Thu Jan 17, 2019 6:56 pm

Single model replacement on the WB side of things screams 787 in the long term.
 
DUSZRH
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Re: Austrian to remove Q400 fleet; grow Airbus NB fleet

Thu Jan 17, 2019 7:02 pm

LAXintl wrote:
MIflyer12 wrote:
Do you interpret that to mean they'll be de-emphasizing Graz, Innsbruck, Klagenfurt, Linz, Salzburg flows to VIE?


I think what they mean is that with the removal of Q400s these secondary cities will lose some of their own direct Europe flights, so the desire is to build better connectivity and network options via DUS and FRA (in addition to existing VIE links).


It’s meant that those profitable flights will be flown from the big bases (DUS/STR/FRA LH/EW) on the other end, to reduce complexity and costs. As with the reaction in Austria, it’s a highly political thing, similarly to BA (“London Airways”), but the right decision.
 
stylo777
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Joined: Mon Feb 13, 2006 7:32 pm

Re: Austrian Airlines announces strategy for coming years

Thu Jan 17, 2019 8:06 pm

makes totally sense to me to reduce complexity by focusing on their core business and hub VIE.
a quick analysis reveals the following:

# 4 out of 18 DH8-400 are currently wetleased to LX > complex operations due to continious positioning of crew and aircraft
# LX on the other hand continues to partner with Helvetic giving them access to part of their E95 fleet (which 2L anyways plans to expand); besides, they also partner with JP on ZRH-LUG (former OS operated route); on top, LX continues to receive their last batch of ordered CS100's aircraft making their "regional" fleet complete quite soon
# (today) 2-3 planes out of the above mentioned Dash fleet are dedicated to decentral Austria flights to Germany.

OS (and LH Group) operated routes are:

SZG (Salzburg):
- FRA
- (VIE)
- EW flights to: CGN, DUS, HAM, STN, TXL

GRZ (Graz):
- DUS, FRA, STR
- (VIE)
- LH Cityline flights to: MUC
- LX flights to: ZRH

INN (Innsbruck):
- FRA
- (VIE)
- (many ski charters these days from various European destinations)
- EW flights to: HAM (operated by X3)

LNZ (Linz):
- DUS
- LH Cityline flights to: FRA (some flights with mainline 32x),

KLU (Klagenfurt):
- (VIE)
- EW flights to: CGN, HAM

>>> conclusion:
# SZG/GRZ/INN to FRA rollover to LH Cityline (CR9, E90, E95)
# GRZ/LNZ to DUS rollover to EW operated by LGW DH4
# GRZ to STR similarily rollover to EW/DH4
# VIE flights operated by own E95; by adding up to 10 additional A320 until 2025 E95 capacity will surely evolve
 
Blerg
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Re: Austrian Airlines announces strategy for coming years

Thu Jan 17, 2019 8:19 pm

Q400 - 76 seats
E95 - 120 seats

That's quite a jump. For as long as I can remember OS had a truly regional jet in its fleet. I guess this has allowed them to remain competitive in smaller markets as well as those that are extremely competitive by having a lot of frequencies/flexibility. I have a feeling we might see quite a few cuts in their network, especially throughout eastern Europe and the Balkans. How can they efficiently operate their current frequencies to Belgrade, Sarajevo, Zagreb, Krakow, Prague... while at the same time adding 46 seats per flight?

I guess massive competition in Vienna is forcing them to chase after volume and they can only do that by concentrating on larger markets with greater potential. This is great news for LO which has the E70 and Q400, they can step in in a lot of markets.
 
stylo777
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Joined: Mon Feb 13, 2006 7:32 pm

Re: Austrian Airlines announces strategy for coming years

Thu Jan 17, 2019 9:11 pm

well, you are certainly right and I agree that it will be a challenge to sell those additional seats; however, the scenario doesn't look too bad to me as they already mix in the E95 and Airbus fleet to Eastern Europe and Balkan operations even today. It is slow season and it definately doesn't mean the flights are full, but just as an indication maybe?
(destination/flights today/equipment sorted by time of departure):
- BEG / 3 / DH4
- SJJ / 1 / 319
- ZAG / 3 / DH4-DH4-E95
- KRK / 1 / DH4
- PRG / 5 / E95-DH4-E95-E95-DH4
apart from that, there were also flights to:
- BUD / 3 / DH4-DH4-DH4
- KBP / 2 / 320-E95
- KIV / 1 / E95
- KSC / 2 / DH4
- LWO / 1 / DH4
- MSQ / 1 / E95
- OTP / 4 / 319-321-320-321
- PRN / 2 / E95-320
- SBZ / 1 / DH4
- SKP / 2 / E95-319
- SOF / 4 / E95-319-320-320
- TGD / 1 / DH4
- TIA / 2 / E95-320
- VAR / 1 / E95
- WAW / 3 / DH4-E95-E95

at the end of the day, they have to sell those seats - one way or the other. at this point there is no alternative to them looking at the competition, current position and market conditions.
and to me, the only way to achieve this is to (try to) remain competitive with lower cost structures and being aggresive on the pricing side. we will probaly see a market flooding with very low fares.
 
303dk
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Re: Austrian to remove Q400 fleet; grow Airbus NB fleet

Thu Jan 17, 2019 10:17 pm

MIflyer12 wrote:
mercure1 wrote:
Also with removal of Q400 fleet, OS will work closer with LH to integrate networks to link Austrian secondary markets (Graz, Innsbruck, Klagenfurt, Linz, Salzburg) better with Frankfurt and Düsseldorf for passenger traffic flow.


Do you interpret that to mean they'll be de-emphasizing Graz, Innsbruck, Klagenfurt, Linz, Salzburg flows to VIE?

Traffic on a several of these routes bleeds to VIE anyway
 
giapichino
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Re: Austrian Airlines announces strategy for coming years

Thu Jan 17, 2019 11:00 pm

Build a proper high-speed train network and Austrian won't need to fly domestically anymore..
 
Bhoy
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Re: Austrian Airlines announces strategy for coming years

Fri Jan 18, 2019 1:30 am

giapichino wrote:
Build a proper high-speed train network and Austrian won't need to fly domestically anymore..

Not so easy/cheap to do with all those Alps in the way.

There's some pretty nice train trips through the Valleys as it is, but when you really have to follow River plains to get from A to B, it's difficult to get real high speed (ie straight) routes.
 
devron
Posts: 318
Joined: Wed Apr 20, 2011 11:56 am

Re: Austrian Airlines announces strategy for coming years

Fri Jan 18, 2019 3:40 am

Can't austian keep some profitable decentralized by opperating in a W pattern? Above it is .mentioned that Austrian like to get 10 Airbus for 200 million. That sounds unrealistic.
 
giapichino
Posts: 32
Joined: Tue Jul 05, 2016 7:17 pm

Re: Austrian Airlines announces strategy for coming years

Fri Jan 18, 2019 8:03 am

Bhoy wrote:
giapichino wrote:
Build a proper high-speed train network and Austrian won't need to fly domestically anymore..

Not so easy/cheap to do with all those Alps in the way.

There's some pretty nice train trips through the Valleys as it is, but when you really have to follow River plains to get from A to B, it's difficult to get real high speed (ie straight) routes.



True, but Vienna to Salzburg, Linz, Graz (mostly flatland) take too long with the train and are even pricey. Have friends who fly out from Vienna and take the connection flight from Linz (I guess 20-30 min flights).
 
Blerg
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Re: Austrian Airlines announces strategy for coming years

Fri Jan 18, 2019 1:19 pm

stylo777 wrote:
well, you are certainly right and I agree that it will be a challenge to sell those additional seats; however, the scenario doesn't look too bad to me as they already mix in the E95 and Airbus fleet to Eastern Europe and Balkan operations even today. It is slow season and it definately doesn't mean the flights are full, but just as an indication maybe?
(destination/flights today/equipment sorted by time of departure):
- BEG / 3 / DH4
- SJJ / 1 / 319
- ZAG / 3 / DH4-DH4-E95
- KRK / 1 / DH4
- PRG / 5 / E95-DH4-E95-E95-DH4
apart from that, there were also flights to:
- BUD / 3 / DH4-DH4-DH4
- KBP / 2 / 320-E95
- KIV / 1 / E95
- KSC / 2 / DH4
- LWO / 1 / DH4
- MSQ / 1 / E95
- OTP / 4 / 319-321-320-321
- PRN / 2 / E95-320
- SBZ / 1 / DH4
- SKP / 2 / E95-319
- SOF / 4 / E95-319-320-320
- TGD / 1 / DH4
- TIA / 2 / E95-320
- VAR / 1 / E95
- WAW / 3 / DH4-E95-E95

at the end of the day, they have to sell those seats - one way or the other. at this point there is no alternative to them looking at the competition, current position and market conditions.
and to me, the only way to achieve this is to (try to) remain competitive with lower cost structures and being aggresive on the pricing side. we will probaly see a market flooding with very low fares.


Exactly, that's why I think they will be presented with a simple choice. Either upgrade those Q400 frequencies to E95 while launching an aggressive marketing campaign or reduce the network in proportion to the number of new seats added.

All in all, OS is in a difficult position.
 
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Phosphorus
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Re: Austrian Airlines announces strategy for coming years

Fri Jan 18, 2019 4:31 pm

stylo777 wrote:
well, you are certainly right and I agree that it will be a challenge to sell those additional seats; however, the scenario doesn't look too bad to me as they already mix in the E95 and Airbus fleet to Eastern Europe and Balkan operations even today. It is slow season and it definately doesn't mean the flights are full, but just as an indication maybe?
(destination/flights today/equipment sorted by time of departure):
- BEG / 3 / DH4
- SJJ / 1 / 319
- ZAG / 3 / DH4-DH4-E95
- KRK / 1 / DH4
- PRG / 5 / E95-DH4-E95-E95-DH4
apart from that, there were also flights to:
- BUD / 3 / DH4-DH4-DH4
- KBP / 2 / 320-E95
- KIV / 1 / E95
- KSC / 2 / DH4
- LWO / 1 / DH4
- MSQ / 1 / E95
- OTP / 4 / 319-321-320-321
- PRN / 2 / E95-320
- SBZ / 1 / DH4
- SKP / 2 / E95-319
- SOF / 4 / E95-319-320-320
- TGD / 1 / DH4
- TIA / 2 / E95-320
- VAR / 1 / E95
- WAW / 3 / DH4-E95-E95

at the end of the day, they have to sell those seats - one way or the other. at this point there is no alternative to them looking at the competition, current position and market conditions.
and to me, the only way to achieve this is to (try to) remain competitive with lower cost structures and being aggresive on the pricing side. we will probaly see a market flooding with very low fares.


Well, for routes like LWO and KBP, where they already codeshare extensively with long-term partner (and former subsidiary) PS/Ukraine International, they can simply hand over more flying to PS, while maintaining frequency, no? Redeploy those assets more productively, PS will be glad to just double KBP-VIE flying to four times a day, on their own metal, and move on.
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