The Austrian airline can cut its spending significantly. The employees of Austrian Airlines waive a lot of money for several years.
Lufthansa, Austrian Airlines and the Austrian government are still wrestling for an aid package for the stricken national airline. Meanwhile, the airline’s management has made an important breakthrough. It has agreed with the employees on a savings contribution of 300 million euros by 2024. This was announced by AUA on Thursday (May 21).
In the meantime, it has been possible to agree with all employees, said Austrian Airlines in a press release. Because demand is expected to recover slowly, short-time work will continue until 2022. Until then, wages will be frozen. After that, wages will be lowered. By the end of 2023, floor personnel will be 2 to 15 percent depending on the wage level. The on-board personnel waived 5.9 to 12.7 percent of their wages in the years 2022 to 2024, as well as pension fund contributions.
Wage costs reduced by around a fifth
Altogether, the 7,000 employees of Austrian Airlines forego about 80 million euros a year. Personnel costs are reduced by a fifth. By 2024, the savings will total around 300 million euros. According to the airline, the package allows as many employees as possible to be kept on board.
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