LUFTHANSA'S AUSTRIAN AIRLINES TO TRANSFER STAFF TO SUBSIDIARY

The Wall Street Journal, 19 April 2012

Deutsche Lufthansa AG subsidiary Austrian Airlines said Thursday it will transfer pilots and cabin crew to its Tyrolean Airways unit in efforts to return to profitability.

Austrian Airlines aims to reduce costs by EUR220 million annually through this move and other measures after booking a EUR62 million loss last year.

Austrian Airlines' supervisory board approved the plan to transfer 600 pilots and 1,500 cabin crew to the unit from July 1. Tyrolean's slower salary increases will achieve the savings, Austrian Airlines said.