AUA Faces Uncertain Future Amidst Ongoing Salary Dispute with On-Board Staff

The AUA is facing a significant challenge in its ongoing negotiations with its on-board staff. Despite the airline’s offer to increase salaries by 18 percent, including an eight percent raise this year and five percent each in 2025 and 2026, the flying staff has rejected it. This has led to a dispute over money that is negatively impacting the airline’s balance sheet and causing potential loss of trust among passengers.

According to aviation expert Kurt Hofmann, the longer the conflict persists, the more detrimental it will be to the AUA. The uncertainty surrounding the airline is resulting in a loss of revenue, with passengers turning to competitors such as Ryanair (Lauda), Wizz Air, and Turkish Airlines. Increasing AUA salaries to match Lufthansa levels is deemed unfeasible and could jeopardize the airline’s efficiency and competitiveness.

The first quarter of 2024 saw a high loss for AUA due to typical seasonal patterns in the airline industry. Vienna’s tourism market poses challenges for the AUA, which has historically maintained a cost-effective structure. However, if the situation escalates, the AUA may face reductions in routes and long-haul traffic.

Ultimately, decisions regarding the AUA’s future will be made at Lufthansa headquarters in Frankfurt. Success as a Lufthansa affiliate will grant the AUA more influence and resources while failure could result in a loss of support and resources from the parent company. The airline’s ability to sustain profitability and operational efficiency will be critical in determining its fate in the coming months.