Austrian Airlines (OS, Vienna) has declared that it will have to reposition itself in light of the rapid growth of low-cost carriers (LCCs) at its home base Vienna.
With the threat of losses in 2019 and 2020 after six profitable years, the Star Alliance carrier will attempt to counteract these unfavourable market developments with a package of operational and cost-saving measures.
The carrier's management board opinion, voiced by its Chief Commercial Officer Andreas Otto, was very clear: “We will not retreat a single millimetre and will maintain our premium strategy.”
As a result of this defiant stance, the airline is bundling its fleet strength in the Austrian capital city and will attempt to stand up to the encroaching LCCs.
Although Austrian Airlines remains the largest seat provider in Vienna, commanding 42% of weekly capacity, which jumps to nearly 50% when partner Eurowings (EW, Düsseldorf Int'l) is included, it is facing increasing pressure from LCCs like Lauda (OE, Vienna), Wizz Air (W6, Budapest), and easyJet (U2,...