AUSTRIA: AUA TO ABANDON SOUTH AFRICA?

Article Abstract:

Ferdinand Schmidt, who is responsible for route planning at Austrian Airlines (AUA), says that AUA may discontinue flights to South Africa in the summer season 2001 unless there is an improvement in the profitability of the service. Despite a high load factor, the service is making losses. This is explained with price competition. Moreover, the political situation in southern Africa may result in a fall in the number of tourists. At the end of March 2000 AUA already discontinued the services from Johannesburg to Cape Town, Harare and Windhoek, leaving them to the code-sharing partner ComAir. If AUA gives up the South Africa service, it may increase flights to Toronto, where clients could use the connecting services of Air Canada. Meanwhile the AUA subsidiary Tyrolean Airways has discontinued flights between Vienna and Friedrichshafen , which never reached a load factor of more than 25%.

Foreign operations, Austrian Airlines, Tyrolean Airways

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AUSTRIA: FLYING TO BECOME MORE EXPENSIVE?

Article Abstract:

If the fuel prices remain high, airline tickets may become much more expensive. According to Mario Rehulka from AUA , a "fuel charge" might amount to Sch 300-400 per ticket and thus raise the prices of economy-class tickets within Europe by up to 10%. Before making a decision, however, AUA wants to wait for the half-year results, which are to be made public in August 2000. AUA, which spent Sch 1.3bn on fuel in 1999, expects the fuel costs to increase by another Sch 600mn in 2000. According to the airline, it will be difficult to keep profits at the level of the previous year.

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AUSTRIA/SWITZERLAND: AUA WINS LAWSUIT

Article Abstract:

AUA , which recently joined the Star Alliance, has won a lawsuit against its former Qualiflyer partner Swissair. As AUA changed the alliance, the Qualiflyer group lost regular customers to the Miles & More bonus programme of the Star Alliance member Lufthansa. Swissair hoped to win the customers back by offering free air miles to customers who returned their Miles & More cards to the Swiss airline. The court accepted AUA's complaint about distortion of competition. Swissair has to stop the campaign and reimburse the Miles & More partners for the additional expenses caused by its action, such as printing of new cards.

Government regulation (cont), Switzerland, Star Alliance Services GmbH, Swissair, Qualiflyer Group

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