Austrian Airlines said it will be able to save 80 million euros per year on staff salaries, and total savings in the coming years will be 300 million euros.
The airline was able to negotiate with flight and ground personnel to reduce costs by reducing salaries and pension contributions.
The savings plan includes the use of short-time work until 2022, a partly socially staggered salary reduction and the suspension of salary increases. From 2024 on, repayments are to be made to the employees, if the company is able to do so. The management will also forego salary.— Austrian Airlines (@_austrian) May 21, 2020
Thus, the salary of employees who provide services at the airport or work in the office will be reduced from 2% to 15% from March 20, 2022, to December 31, 2023.
The salary of pilots and cabin crew will be lower by 5.9% -12.7% from 2022 to 2024.
The airline emphasizes that these savings will be complemented by other measures during the gradual roll-out of a cost-cutting program. Among them – the transition to a shortened working day until 2022 and the rejection of the annual increase in wages or its indexation to inflation.
“The agreements reached on savings on wages will allow us to retain as many staff as possible during the crisis,” said Jens Ritter, chief operating officer of Austrian Airlines.
The airline suspended regular flights on March 18, at least until June 14. At the moment, the Austrian air carrier has not announced the exact date of the restart of flights and the new route network.