Austria, as part of the Austrian Airlines rescue program, will amend anti-dumping legislation to set minimum airfare.
It cannot be lower than the amount of taxes and fees. The Minister of Transport of Austria, representing the Green Party, Leonora Gessler, at a government press conference on June 8, said that this would lead to a minimum price for a flight of 40 euros in both directions.
According to the Austrian public broadcaster ORF, the new measures also include increasing fees for flights up to 350 km from the current 12 euros to 30 euros.
Austrian Airlines will be banned from flying to cities where trains can be reached from Vienna in less than 3 hours. The Vienna-Salzburg route has already come under the restriction. After restarting flights, the line will not be serviced, and passengers will have to travel to the airport of the Austrian capital by train to make a transfer.
The Austrian government has approved a package of financial assistance to Austrian Airlines, which will receive 600 million euros.
The state will provide 150 million euros in the form of subsidies, another 150 million euros will be transferred by the parent company – Lufthansa.
Austrian Airlines will also receive a loan of € 300 million into its accounts, which will be guaranteed by the state by 90%. If the carrier is unable to pay the debt, it will become the property of Austria.
Lufthansa CEO Karsten Spur said that without state aid, Austrian Airlines bankruptcy would have been inevitable.
In addition to injecting a quarter of the total financial assistance package, the parent company also committed to ensuring that traffic through Vienna Airport is at the same level as in its hubs in Frankfurt and Munich.