Lauda outlines restructuring under ‘survival plan’

Lauda’s Austrian arm is being repositioned as a wet-lease carrier and the Ryanair subsidiary is ending the employment of crew members who did not support a new collective labour agreement, as part of a “survival plan” to secure operations in Vienna. The airline says more than 330 flying staff members will be retained when operations resume on 1 July, but adds: ”Up to 12 pilots and 82 cabin crew who did not accept Lauda’s new CLA/T&Cs document dated 28 May 2020 will receive notice of termination of employment at the end of June.” Parent group Ryanair had in May announced the closure of Lauda’s Vienna base amid a labour dispute with Austrian union Vida. That decision was later reversed when an 11th-hour agreement was reached. Despite the new labour terms, Lauda says it still faces “substantial challenges” and cites a E600m financial support package for Lufthansa subsidiary Austrian Airlines which the German group agreed with Austria’s government. “A range of survival measures necessary to face post Covid-19 competition with [Lauda’s] German-owned airline competitor [Austrian],” Lauda argues. As part of the measures, it says it will “become a wet-lease operator for other airlines”, noting that “the Lauda brand will continue in Vienna”.<br/>
Cirium
https://www.flightglobal.com/strategy/lauda-outlines-restructuring-under-survival-plan/138917.article
6/19/20