Austrian Airlines
On the 5th of November 2020 we were invited to a Teams Meeting by the CEO of Austrian Airlines, Dr. Alexis von Hoensbroech. Due to the current Covid-19 situation it had to be another online meeting instead of a visit to the company.
Among the most affected by the Covid-19 Pandemic is the aviation industry. Airlines in the whole world have to cope with this situation by reducing costs and activities on one side but maintaining their services as well as possible on the other side. Dr. von Hoensbroech informed us about the current situation and talked about the future of aviation with special consideration to Austrian Airlines. He confirmed that Austrian Airlines despite the current limitations still uses Vienna as its hub so that feeder flights to Vienna are coordinated with long distance flights including oversea flights. In normal times, this hub is extremely important for Austria, and most of all Vienna for its economy, especially the export industry and tourism and it is important for the international organizations based in Vienna. In 2019 more than 50% of tourists coming to Austria arrived by airplane. Next year flights to all destinations in Central and Southeastern Europe will be reinstated as soon as the situation allows it. AUA is hoping for some moderate normalization until summer 2021.
Dr. von Hoensbroech pointed out that AUA is considering rapid virus testing methods for the safety of all passengers. In 2019 AUA transported 15 million passengers, with revenues above 2 billion EUR employing 7000 people. AUA is among the largest private employers in the Vienna region. One quarter of the passengers are Austrians, three quarter are from outside, also due to the cooperation with its mother company Lufthansa. Before the Corona crisis erupted AUA performed profitably. In 2020 the revenue went down by 85%. Because of the liquidity assistance of 600 million EUR by the Austrian government and Lufthansa, AUA will be safe through the winter and spring time until the situation will expectedly improve. For summer 2021 AUA will need 60% to 70% of a normal capacity. Pharmaceutical answers, are they going to come? CEO Dr. von Hoensbroech also informed us about the current situation of the aviation industry worldwide, the impact of more online meetings also for aviation in the future, which cannot, however, fully replace meetings in person. Concerning environmental issues AUA is reducing or ceasing flights to short distance destinations with a good railway connection such as Vienna-Salzburg. In the long run flying should be made CO2 neutral with sustainable synthetic aviation fuels. Kerosene can be produced also from other sources such as CO2, hydrogen + energy.
Dr. Alexis von Hoensbroech commenced his professional career in 1999 at The Boston Consulting Group. In 2005 he moved to Lufthansa Passage, where he assumed responsibility for its Strategy & Subsidiary division. In 2009 Dr. von Hoensbroech was named Project Manager for Airline Integration Management, where he was in charge of the integration of Austrian Airlines in the Lufthansa Group, amongst other duties. 2010-2014 he was appointed as "Head of Commercial Frankfurt", since 2014 he has held the position of CCO and Member of the Executive Board of Lufthansa Cargo AG. As of August 1, 2018, he became CEO of Austrian Airlines.
The presentation was followed by an online Q&A session and thanks to CEO Dr. von Hoensbroech we had an ample opportunity to raise questions.
