Austrian Airlines

Austrian Airlines is Austria’s flag carrier and one of the principal airlines in the Lufthansa Group. Its main base and hub is Vienna International Airport, from which it operates scheduled passenger services across Europe and to selected long-haul destinations in North America, Asia, the Middle East and Africa. The carrier is also a member of Star Alliance and participates in the Miles & More frequent-flyer programme. The airline’s immediate corporate origin is the 1957 merger of Air Austria and Austrian Airways, although commercial aviation under the Austrian Airlines name traces back to Austrian Airways’ establishment in 1923. The early company operated Junkers aircraft and developed links to neighbouring European cities. Its independent development was interrupted after the 1938 annexation of Austria, when the company was absorbed into Lufthansa’s predecessor and removed from the commercial register in 1939. After Austria regained sovereignty, a new national carrier was created and began scheduled operations in 1958 with leased Vickers Viscount aircraft on routes from Vienna to Zurich and London. Austrian entered the jet age with the Sud Aviation Caravelle in the 1960s and subsequently built a fleet around Douglas DC-9 and McDonnell Douglas MD-80 aircraft. It opened its first long-distance service to New York in 1969 in cooperation with Sabena, although that initial service was later discontinued. A regular New York route was relaunched in 1989 with an Airbus A310. During the 1980s and 1990s, the airline added aircraft from Airbus, Boeing and Fokker and expanded its international network. The 1990s and early 2000s brought greater emphasis on alliances, Central and Eastern Europe, and acquisitions. Austrian joined the Qualiflyer Group and later became a Star Alliance member in 2000. It acquired or consolidated interests in Lauda Air, Tyrolean Airways and Rheintalflug, while its Focus East strategy made Vienna an important gateway between Western Europe and Central and Eastern Europe. The group also introduced online booking and shortened its operating brand name to Austrian in 2003. A period of rapid expansion was followed by sustained financial pressure. The airline reduced jobs, rationalised its fleet and withdrew several long-haul routes. In 2008, the Austrian government sought a strategic buyer, and Lufthansa was selected in November of that year. The European Commission reviewed the transaction before approving it in 2009. Austrian subsequently became a Lufthansa Group subsidiary, and its shares were suspended from trading on the Vienna Stock Exchange in 2010. Post-acquisition restructuring included fleet renewal, route changes and efforts to reduce operating costs. A major labour dispute led to the transfer of flight operations to subsidiary Tyrolean Airways in 2012. After a new collective labour agreement, operations and personnel were returned to Austrian Airlines and Tyrolean was merged into the parent airline in 2015. In the following years, Austrian continued simplifying its fleet and rebuilding profitability while retaining Vienna as its strategic centre. Today the brand operates as a full-service network carrier within the Lufthansa Group, combining European connectivity with a smaller long-haul network and a service identity associated with Austrian hospitality.

Austrian commercial aviation history began in 1923, when Austrian Airways was established with government approval and operated Junkers aircraft on regional European routes. The company developed connections to cities including Munich, Budapest, Nuremberg, Graz and Klagenfurt, and cooperated with Deutsche Luft Hansa during the interwar period. Planned expansion to Rome, Paris and London was abandoned after Austria was incorporated into Nazi Germany in 1938. The company was subsequently placed under Lufthansa control and dissolved from the commercial register in 1939. After the Second World War and the restoration of Austrian sovereignty, two new airlines—Air Austria and Austrian Airways—were formed to fill the absence of a national carrier. They merged in 1957 to create Österreichische Luftverkehrs AG, known internationally as Austrian Airlines. Scheduled flying began in March 1958 with a leased Vickers Viscount serving Vienna, Zurich and London. The airline soon bought its own Viscount aircraft, introduced domestic flights in 1963 and ordered its first jet, the Sud Aviation Caravelle, that year. Douglas DC-9 aircraft then became the foundation of a standardised all-jet fleet, achieved by the end of 1971. Austrian developed a strong relationship with the McDonnell Douglas MD-80 family. It was an early customer for the DC-9-80 and later became the first customer for the MD-87. The carrier also broadened its fleet with Airbus, Boeing and Fokker aircraft. Its first attempt at a long-haul New York service began in 1969 with a Brussels stop and cooperation from Sabena, but the route ended in 1971. A regular long-haul network was established in 1989 when an Airbus A310 began serving New York-JFK. In the 1990s, Austrian responded to industry consolidation by joining the Qualiflyer Group and expanding toward China and South Africa. It acquired significant interests in Lauda Air and Tyrolean Airways and later bought Rheintalflug. Its Focus East programme, launched in 2004, concentrated on Central and Eastern European growth. Austrian joined Star Alliance in 2000, introduced online booking in 1999 and adopted the shorter Austrian brand name in 2003. The group’s growth was accompanied by financial difficulties. Route withdrawals, job reductions and fleet changes followed, including the retirement of Airbus A330 and A340 aircraft and a greater emphasis on Boeing 767/777 and Airbus narrow-body operations. In 2008, the Austrian government began seeking a foreign strategic investor. Lufthansa was selected in November 2008 and acquired control in 2009 after European Commission review. Austrian’s Vienna Stock Exchange shares were suspended in 2010. The Lufthansa period brought additional restructuring and fleet-renewal plans. Labour disagreements over cost reduction culminated in the transfer of Austrian flight operations to Tyrolean Airways in 2012. This arrangement ended after a new collective agreement, with operations returning to Austrian on 1 April 2015 and Tyrolean being absorbed. Austrian subsequently continued as a Lufthansa Group and Star Alliance network carrier, maintaining Vienna as its principal hub and developing a mix of European feeder routes and long-haul services.

• 2015

  Tyrolean operations reintegrated

  [1]Austrian Airlinesen.wikipedia.org

  A new labor agreement returned flight operations and staff to Austrian Airlines and ended the separate Tyrolean operating arrangement, with Tyrolean merged into the parent.

• 2012

  Operations transferred to Tyrolean

  [1]Austrian Airlinesen.wikipedia.org

  Austrian-branded flights moved to Tyrolean Airways during a labor and restructuring dispute.

• 2009

  Lufthansa acquisition completed

  [1]Austrian Airlinesen.wikipedia.org

  Lufthansa acquired Austrian Airlines after regulatory review and approval, integrating it into the Lufthansa Group structure.

• 2003

  Public rebranding to Austrian

  [1]Austrian Airlinesen.wikipedia.org

  The principal airline adopted the shorter Austrian operating name and reorganized the presentation of its constituent carriers.

• 2001

  Rheintalflug acquired

  [1]Austrian Airlinesen.wikipedia.org

  The group acquired all shares in Rheintalflug, further consolidating Austrian aviation operations.

• 2000

  Joins Star Alliance

  [1]Austrian Airlinesen.wikipedia.org

  Austrian Airlines became a member of the Star Alliance network, increasing its global partnership and connecting-flight reach.

• 1997

  Expansion through Lauda Air and Tyrolean Airways

  [1]Austrian Airlinesen.wikipedia.org

  The group acquired a stake in Lauda Air and a majority interest in Tyrolean Airways as it expanded its airline portfolio.

• 1989

  Regular New York service launched

  [1]Austrian Airlinesen.wikipedia.org

  Austrian inaugurated a regular long-haul route to New York-JFK with an Airbus A310.

• 1988

  Initial public offering

  [1]Austrian Airlinesen.wikipedia.org

  Austrian Airlines completed an initial public offering on the Vienna Stock Exchange while the Austrian government retained majority ownership.

• 1971

  All-jet fleet achieved

  [1]Austrian Airlinesen.wikipedia.org

  The airline withdrew its remaining Viscounts and operated an all-jet fleet centered on Douglas DC-9 aircraft.

Showing the 10 most recent.

Full-service network airline serving as Austria’s flag carrier, with Vienna positioned as a bridge between Western Europe and Central and Eastern Europe. Austrian national flag-carrier brand focused on Vienna-based European connectivity and selected intercontinental routes within the Lufthansa Group network.

• Passenger aviation · 1958

  European passenger network

  Austrian’s short- and medium-haul network connects Vienna with destinations across Austria, Europe and especially Central and Eastern Europe. These services provide local traffic as well as connecting passengers into the wider Lufthansa Group and Star Alliance systems.

• Passenger aviation · 1969

  Long-haul passenger services

  The airline operates selected intercontinental routes from Vienna, including services historically developed to North America, Asia, Africa and other international markets. Long-haul flying has been repeatedly adjusted in response to demand, fleet economics and group strategy. Austrian operated Airbus wide-body aircraft in earlier periods and later concentrated its long-haul fleet on Boeing 767 and 777 aircraft as part of a fleet-standardization program. Long-haul flying included historic and later services to North America, Asia, and Africa. Austrian operated Airbus wide-body aircraft in earlier periods and later concentrated its long-haul fleet on Boeing 767 and 777 aircraft as part of a fleet-standardization program.

• Cargo aviation

  Air cargo

  Austrian provides cargo capacity through aircraft belly space and related Lufthansa Group logistics arrangements, supporting the movement of freight on its passenger network.

• Loyalty programme

  Miles & More

  Miles & More is the frequent-flyer programme used across Lufthansa Group airlines, including Austrian Airlines. Members can earn and redeem miles through eligible flights and participating partners.

• Passenger airline services · 1958

  Austrian Airlines scheduled passenger services

  The group’s core offering was scheduled passenger transportation from its Vienna base. The network combined domestic Austrian flying, European routes, and intercontinental services, with Vienna functioning as the principal connecting hub. The service portfolio changed repeatedly as the company responded to competition, fleet economics, alliances, and restructuring.

• Regional and European air transport

  European and Central Eastern European network

  Austrian developed a strong regional position around Vienna, particularly through the Focus East strategy launched in the 2000s. This network connected Austria with Central and Eastern European cities and fed onward traffic into the wider Star Alliance and Lufthansa Group systems.

• Charter airline services · 1997

  Lauda Air charter brand

  Lauda Air became part of the Austrian group through a staged acquisition. Its scheduled flight operations were combined with Austrian’s in 2004, while the Lauda Air name continued for charter activity for a period before the group was further consolidated.

• Regional airline services · 1997

  Tyrolean Airways operations

  Tyrolean Airways was an Austrian Airlines Group subsidiary. It operated regional services and, during the 2012 labor restructuring, temporarily operated all Austrian-branded flights. Its flight operations and staff were reintegrated into Austrian Airlines in 2015.

• 2009

  Review of Lufthansa tender process

  The European Commission investigated whether the Austrian Airlines sale process had been structured in a way that favored Lufthansa. The transaction was ultimately approved, but the process attracted criticism and political scrutiny. The European Commission investigated concerns about the process used by Austria to select Lufthansa as the buyer of Austrian Airlines, including whether the sale process had been structured in a way that favored Lufthansa. The transaction was ultimately approved after regulatory examination, but the process attracted criticism and political scrutiny.

  Source

Read more

• 2004Focus East

  Central Europe · Eastern Europe

  The Focus East strategy expanded Austrian’s destinations across Central and Eastern Europe and sought to make the Vienna-based group a leading regional connector. The strategy strengthened Austrian’s regional positioning and expanded its network, although the group later undertook significant route and cost restructuring.

  Outcome. The strategy strengthened Austrian’s regional positioning and expanded its network, although the group later undertook significant route and cost restructuring.

  Source

• 2015

  Merger with Tyrolean AirwaysM&A

  Background

  A revised labour agreement resolved the operational and employment dispute created by the 2012 transfer.

  Action taken

  Austrian Airlines reintegrated Tyrolean’s flight operations and personnel and absorbed the subsidiary, ending the separate operating structure.

  Aftermath

  The group returned to a more unified Austrian Airlines operating model.

  Source

• 2013

  Retirement of Boeing 737 fleetGeneration change

  Background

  The group continued its fleet-consolidation program after the Lufthansa acquisition.

  Action taken

  Austrian retired its remaining Boeing 737 aircraft and replaced them with a smaller number of Airbus A320-family aircraft.

  Aftermath

  The change reduced fleet-type complexity and was expected to produce recurring operating savings.

  Source

• 2012

  Transfer of flight operations to TyroleanStrategy

  Background

  Negotiations over employment conditions and cost reductions failed to produce an agreement within Austrian Airlines, creating a labor dispute within the group.

  Action taken

  The group transferred all Austrian-branded flight operations to Tyrolean Airways, with some pilots and flight personnel leaving rather than moving to the subsidiary.

  Aftermath

  A new labor agreement later reversed the arrangement, returning operations and employees to Austrian Airlines in 2015.

  Source

• 2009

  Sale to Lufthansa GroupM&A

  Background

  The Austrian government sought a foreign owner after years of losses and selected Lufthansa as the preferred purchaser in 2008.

  Action taken

  Lufthansa acquired Austrian Airlines after regulatory review and integrated it into the Lufthansa Group structure.

  Aftermath

  Austrian retained its brand and Vienna hub while undergoing further restructuring, fleet renewal, and labor reorganization.

  Source

• 2006

  Fleet and route rationalisationStrategy

  Background

  Continuing losses and cost pressure led management to reconsider the long-haul network, fleet composition and onboard service model.

  Action taken

  Austrian withdrew several long-haul routes, retired Airbus A330 and A340 aircraft, moved toward Boeing 767/777 and Airbus narrow-body fleets, and reduced complimentary short-haul catering.

  Aftermath

  The measures lowered complexity but contributed to labour tensions and a prolonged restructuring period, and did not prevent major losses in 2008 and the subsequent search for a strategic buyer.

  Source

• 2006

  Fleet simplification and cost-reduction programStrategy

  Background

  Persistent financial pressure led Austrian Airlines to reduce employment, cancel selected long-haul routes, simplify its fleet, and revise short-haul onboard service.

  Action taken

  The group moved away from Airbus wide-body aircraft, concentrated long-haul flying on Boeing 767 and 777 aircraft, and introduced a reduced short-haul catering model.

  Aftermath

  The measures reduced complexity but did not prevent major losses in 2008 and the subsequent search for a strategic buyer.

  Source

• 2015

  Austrian and Tyrolean flight operations reunified[1]Austrian Airlinesen.wikipedia.org

  M&A · Leadership change

  A new labor agreement enabled the transfer of flight operations and employees back to Austrian Airlines and the subsequent merger of Tyrolean’s flight operations into the parent airline.

• 2014

  Austrian Airlines returns to profitability[1]Austrian Airlinesen.wikipedia.org

  Other

  The airline reported a return to profit after years of losses and restructuring measures.

• 2012

  Austrian-branded operations transferred to Tyrolean Airways[1]Austrian Airlinesen.wikipedia.org

  Leadership change · Other

  Following a labor dispute over restructuring and employment terms, the group transferred Austrian-branded flight operations to its subsidiary Tyrolean Airways.

• 2009

  Lufthansa completes acquisition of Austrian Airlines[1]Austrian Airlinesen.wikipedia.org

  M&A

  Lufthansa acquired Austrian Airlines after regulatory approval, bringing the Austrian flag carrier into the Lufthansa Group.

• 2008

  Austrian government selects Lufthansa as preferred buyer[1]Austrian Airlinesen.wikipedia.org

  M&A

  Austria’s state holding company selected Lufthansa as the preferred purchaser of Austrian Airlines after competing interest from several international airline groups.

1. 1Austrian Airlinesen.wikipedia.org
2. 2Austrian Airlines managementaustrian.com
3. 3Lufthansa Group Unveils New Branding to Unify Expanding Airline Portfoliorustourismnews.com