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BBC News Online: Business


Tuesday, 9 October, 2001, 15:49 GMT 16:49 UK

Austrian Airlines cuts 800 jobs


Austrian Airlines plane
The crisis in the airline industry has claimed more jobs, with Austrian Airlines saying it is to cut 800 jobs, or 10% of its workforce, by the end of 2002.

The airline said the move is part of cost-cutting measures which have been made more urgent following the impact of the attacks in the US.

The company's managers will also cut their salaries by 15% next year.

"The difficult economic situation in which the Austrian Airlines Group now finds itself will demand sacrifices from all who work for the company," company chairman Vagn Sorensen said.

"Management is in the front line during such times of crisis and wishes to lead by example throughout."

The carrier said the job cuts would be made "both between the members of the Austrian Airlines Group and within the individual companies".

The Austrian Airlines Group consists of Austrian Airlines, Lauda Air, Tyrolean Airways and Rheintalflug.

The company also warned that additional measures may be needed.

"In the course of the restructuring of the Austrian Airlines Group, further steps will be necessary if reorientation is to be achieved and the company is to return to profit," Mr Sorensen said.

Industry crisis

The job losses are just the latest cutbacks to be announced following the September 11 attacks.

The reluctance of people to travel by air after the attacks has plunged the airline industry into crisis, with more than 100,000 jobs having being cut around the world.

Swissair - one of the most high profile victims - has also announced this week that it is to cut 9,000 jobs, or 12.5% of its workforce.

On Wednesday, the European Commission is expected to present a package of measures aimed at supporting struggling airlines in Europe.


Related to this story:
Swissair cuts 9,000 jobs (09 Oct 01 | Business) Banks blamed for Swissair failure (08 Oct 01 | Business) Round-up: Aviation in crisis (09 Oct 01 | Business)


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