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Austrian Airlines To Retire 28 Aircraft, Keeping Future Fleet With 60

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Austrian Airlines Dash8-Q-400
Austrian Airlines’ flight operations have been at a standstill since March 18, 2020, and they are not expecting demand to recover anytime soon. Austrian Airlines’ post-crisis plan would include capacity cut by phasing out 28 aircraft as an effort to downsize their fleet due to significantly dampened demand in the medium term.
Austrian Airline B777-200 OE-LPF
Austrian Airline B777-200 OE-LPF

Following the continuing evolvement of the Covid-19 pandemic crisis. it is not yet possible for Austrian Airlines to precisely forecast when the complete freedom to travel will be restored. This year Austria’s flag carrier predicts a 25 to 50% drop in demand. A maximum of 75% of the pre-coronavirus level is expected by the end of 2021.

Austrian Airlines Executive Board member Andreas Otto comments: “The entire airline industry is pessimistic. We have to assume that we will reach the ‘pre-corona level’ again in 2023 at the earliest.” 


Austrian Airlines is now preparing to realign its fleet to reflect the decrease in demand. The Executive Board came out with a statement yesterday of its “Plan for a New Start” suggesting a significant reduction to their fleet capacity.

Austrian Airlines B767 OE-LAW
Austrian Airlines B767 China OE-LAW

Austrian Airlines currently operates a fleet of 83 aircraft. They will continue to retire their originally planned 18 De Havilland Canada Dash-Q400 Turboprops following the decision made in 2019. In addition, all of their 7 A319s and 3 of the oldest B767s are to be retired by 2022. In total, they would be phasing out 28 aircraft out of their fleet while phasing in a number of old A320s to replace some of the capacity.

Austrian Airlines’ post-Covid-19 fleet plan envisages only around 60 aircraft in 2022, with only 9 long-haul aircraft. This approach is to take place in stages which in the ned corresponds to a capacity reduction of around 20%.


REGDELIVEREDSTATUSNAMEAGE
OE-LAEJan 2005Wiener Sängerknaben19.5 Years
OE-LATMar 2007StoredThailand28.6 Years
OE-LAWFeb 2005StoredChina27.7 Years
OE-LAXApr 2007StoredSalzburger Festspiele27.4 Years
OE-LAYJul 2005StoredJapan21.4 Years
OE-LAZApr 2005StoredIndia20.8 Years

Austrian Airlines B767-300 Fleet

The Boeing 767-300s aircraft to be retired are Thailand(OE-LAT), China(OE-LAW) and Salzburger Festspiele (OE-LAX), which are the oldest aircraft of the 6 of its type in their fleet with an average age of over 28 years. The other three B767s are between 19.5 and 21.4 years old. Austrian Airlines’ entire fleet age currently is at 15.4 years which is very old, They stated that their average fleet age will decrease to 14.6 after the plan is finished.


Austrian B767 OE_LAX
Austrian B767 Salzburger Festspiele OE-LAX

Despite the reduction of the fleet, as many jobs as possible are to be maintained. Appropriate talks are already underway with the works councils. We got into this crisis through no fault of our own. Now it is our responsibility to make Austrian Airlines fit for the future after Corona. We want to retain our long-haul hub, even if we have no other choice for the time being but to adapt to the somewhat smaller market. Being fit for the future also means that we must be in a position to finance our aircraft, charges, wages and investments, and of course also to repay any charges and loans from Corona grounding,” emphasises Austrian Airlines CEO Alexis von Hoensbroech. 

“We now have a plan, and hope for the support of everyone involved”, the Executive Board agrees unanimously. 

2 Comments

2 Comments

  1. OAUSWIEN

    April 23, 2020 at 3:59 am

    Those are some tiny aircrafts they are retiring, and they should just get rid of their all 6 b767s

  2. Tony Liu

    April 23, 2020 at 9:55 pm

    767 is already backed up …

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Airline Operation

Lufthansa Group To Implement Permanent Capacity Reduction Of 150 Aircraft By 2025

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Lufthansa A380

The Executive Board of Deutsche Lufthansa AG approved the third package within the Group-wide “ReNew” restructuring program earlier today.Due to significantly lower than expected air traffic recovery, Lufthansa’s Executive Board has today adopted several measures to cut costs and preserve cashflow, including reductions in fleet size and personnel.


The outlook for international air traffic has significantly worsened in recent weeks. With the summer travel season coming to an end, passenger and booking figures are declining again, after slight signs of recovery were still evident in July and August. In view of these developments, Lufthansa has finalised decisions on the third package within their restructuring program earlier today. 


Lufthansa Fleet Parked
Lufthansa Fleet Parked

In detail, the Executive Board adopted the following resolutions:

  • The capacity outlook for the passenger airlines will be significantly revised; the previous assumption that an average production level of 50 percent of the previous year’s value would be reached in the fourth quarter of the year no longer seems realistic. If the current trend continues, the available seat kilometres will probably only be in a range between 20 and 30 percent, compared to the previous year.
  • The medium term fleet planning will be adjusted and currently foresees  a permanent, Group-wide capacity reduction of 150 aircraft by the middle of this decade (starting point is the Group fleet including wet-leased aircraft).
  • In addition to the fleet changes already communicated, the following decisions have been made: After six Airbus A380s were finally taken out of service in the spring, the remaining eight A380s and ten A340-600s, which were previously intended for flight service, will be transferred to long-term storage and removed from planning. These aircraft will only be reactivated in the event of an unexpectedly rapid market recovery. In addition, the remaining seven Airbus A340-600s will be permanently decommissioned.
  • The fleet decisions mentioned above will result in a further impairment of up to EUR 1.1 billion. The amount is expected to be accounted for in the third quarter of the current year.
  • The previously announced personnel surplus amounting to 22,000 full-time positions will increase as a result of the decisions taken in regards to the third package within the restructuring program. The change in permanent staffing levels within flight operations will be further adjusted in regards to market development. The compensation and reduction of personnel surplus will be discussed with the responsible employee representatives.
  • Irrespective of the negotiations on reconciliations of interests and social plans for redundancies within the Lufthansa Group, the Executive Board’s objective remains agreeing on crisis packages with the collective bargaining partners that limit the number of necessary redundancies.
  • Despite the worsened outlook, the revised financial planning intends to further reduce cash outflows through strict cost management. The outflow of liquidity is to be reduced from currently around EUR 500 million per month to an average of EUR 400 million per month in winter 2020/21. The previously communicated Group target of returning to positive operating cash flows during 2021 is being reinforced.
  • A streamlined management structure with a 20 percent reduction of management positions is to be implemented in the first quarter of 2021. To simplify and clearly define responsibilities, the functional process organization (matrix) will be focused on core functions of Lufthansa Group Airlines. For all other areas, a new management model with clearly assigned responsibilities (decentralized or centralized, depending on the process) will be introduced.
  • The administrative office space will be reviewed worldwide and reduced by 30 percent in Germany.

Lufthansa Group Press Release


Lufthansa A380
Lufthansa A380

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