Austrian Airlines (OS, Vienna) has announced that management and the Works Council for its Tyrolean Airways (VO, Innsbruck) subsidiary's flight and cabin crew (Betriebsrat Bord der Tyrolean Airways) have reached an agreement on the cornerstone principals of a new Group collective wage agreement.

"The framework agreement serves as the basis for a new Group collective wage agreement which will be drafted in detail and already apply to the approximately 900 pilots and 2,300 flight attendants as of December 1, 2014," the Lufthansa (LH, Frankfurt Int'l) subsidiary said.

The agreement, which Austrian's Supervisory Board has already approved, regulates future salaries and retirement benefits, working time and career development for the cockpit and cabin crew.

Another key aspect of the negotiated solution is the transfer of flight operations to Austrian Airlines effective March 1, 2015. As a consequence of this, special severance payments were agreed upon for staff affected by the transition.

“Due to the agreement we now have a new starting point for a new, unified Austrian Airlines – flown by Austrian, operated by Austrian. We can now concentrate on designing the future. This includes the modernization of the fleet," Austrian Airlines CEO Jaan Albrecht said.

Parties concerned have agreed not to disclose any details about the agreement.