Lufthansa restructuring must not endanger Austrian location

Lufthansa has announced comprehensive restructuring plans – and these also affect the Austrian subsidiary Austrian Airlines (AUA). This raises concerns about Austria as an aviation location and the future of thousands of jobs.

"There is currently no talk of immediate staff cuts, but we must not be deceived," warns Daniel Liebhart, aviation expert of the trade union vida. "There are already clear signs that Austria is being weakened as a business location. If AUA continues to lose importance, Austrian jobs will also be threatened."

Wet lease undermines Austrian jobs

A growing challenge is the so-called wet lease. AUA rents aircraft and crews from other airlines to cover demand peaks or short-term cancellations. "Intended as an exception, this instrument is now becoming common practice," Liebhart criticizes.

The consequences are serious: instead of using Austrian personnel from AUA, crews from abroad are increasingly taking over. "In reality, this means that instead of using Austrian AUA personnel, crews from abroad are employed. As a result, Austrian employees are gradually losing their employment opportunities. In contrast to the regular staff of AUA, the foreign crews are often not subject to a collective agreement. This undermines Austrian labour and social standards."

Taxpayers bailed out AUA – without a say

It is particularly explosive that hundreds of millions of euros of Austrian taxpayers' money flowed into the rescue of AUA during the Corona crisis. In contrast to Germany, however, the Republic of Austria waived its right to have a say in the company.

"This is now taking its toll - we saved the airline with taxpayers' money, but we have no influence whatsoever on the fact that these funds will also secure Austrian jobs in the long term," Liebhart emphasizes.

Thinning out of Vienna as a location threatens

Another aspect of the Lufthansa restructuring is the planned phasing out of smaller aircraft in favor of larger Airbuses. This could reduce the number of aircraft stationed in Vienna – with direct consequences for employees.

Trade union vida calls for investments in Austria as a business location

Nevertheless, vida sees opportunities to stop the trend. "In order to maintain a strong and competitive aviation industry in Austria, targeted investments in AUA are needed and a clear commitment that enough aircraft and crews will remain stationed in Vienna," Liebhart demands.

"It must not be the case that Austria rescues with taxpayers' money and then watches as domestic jobs are undermined by wet lease."

Result

The planned Lufthansa restructuring entails considerable risks for Austria as an aviation location. The trade union vida is therefore demanding clear commitments for jobs at Austrian Airlines as well as investments in Vienna as a location. Without countermeasures, there is a threat of a creeping displacement of Austrian employees in favor of cheaper crews from abroad.