Austrian low-cost airline Lauda may face dozens of job cuts:report

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Austrian low-cost air carrier Lauda will face up to 30 job cuts if it does not implement measures towards cost-cutting and greater efficiency, its administration has warned, according to a report by newspaper Die Presse on Thursday.

Air information portal Aviation Net Online reported on the internal memo from management led by CEO Andreas Gruber, where it was warned that productivity and efficiency must be improved for the airline to be able to continue to operate.

It cited among other reasons losses incurred at the Ryanair subsidiary’s home base in Vienna, along with low productivity.

The management said it expects a corresponding agreement to be signed by the employee works council by August 14, otherwise up to 30 jobs for on-board personnel could be lost. In addition, Ryanair may itself take over a planned aircraft expansion in Vienna.

The proposed amendments centre primarily around reducing costs by cutting wages and implementing a more efficient staff roster system. The airline reportedly has a collective wage agreement, unlike other low-cost carriers at the airport, that appears to have become too expensive for it to maintain.

Lauda ran up a loss of almost 140 million euros (155 million U.S. dollars) in 2018, before being bailed out by Ryanair. Had this not occurred, the airline would already have folded.

The Ireland-based parent itself appears set for job cuts, with CEO Michael O’Leary recently warning that staff should prepare for this in the coming weeks, and claiming the company has about 900 staff too many.

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