ATW Daily News

Austrian faces drop in passengers, but not in share price

Wednesday December 24, 2008

Austrian Airlines CEO Alfred Oetsch told ATWOnline that the carrier is expecting a "single-digit" drop in passengers next year and that further adjustments in capacity and costs are possible if demand continues to fall, including moving some workers to part-time status, but he ruled out layoffs. However, he said the company is facing declining traffic "in all classes" (ATWOnline, Dec. 23) and that while its key routes to Eastern Europe are being affected, they are not hurting "as strong compared to other areas." The outlook has not damaged AAG's value (ATWOnline, Oct. 29), with Austrian takeover authorities setting the per-share price that Lufthansa will offer AAG shareholders at €4.49, up from the original €4.44 (ATWOnline, Dec. 4). AAG shares have risen 34% since LH's offer was announced, but the new price still is 26% higher than Monday's closing price, Reuters reported.

by Kurt Hofmann

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