The AUA has proposed an 18 percent increase in salaries for its on-board staff, including an eight percent increase this year and five percent each in 2025 and 2026. However, the flying staff has rejected this offer, leading to a dispute over money after the 20th round of negotiations. This conflict is negatively impacting the AUA’s balance sheet, with potential loss of trust among passengers as a result.
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.
Increasing salaries for its flying staff was not enough for AUA. The airline also faced challenges from Vienna’s tourism market due to typical seasonal patterns in the airline industry. The company had historically maintained a cost-effective structure but if the situation escalates, it 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.