Transportation Industry
Company Watch - Austrian Airlines
AirGuide Business, May 5, 2008
May 5, 2008
A Saudi-Austrian investor has pulled out of a deal to buy a stake in Austrian Airlines, an Austrian magazine reported on Saturday. The airline's main shareholder, state holding company OeIAG, had agreed terms in March for Sheikh Mohamed Bin Issa al Jaber to take a stake via a capital increase. But Profil magazine, citing a lawyer's letter, said he had pulled out of the deal on April 30. The magazine said the stake would have been worth EUR150 million euros (USD$232 million). Austrian Airlines has a market capitalization of around EUR350 million. May 4, 2008
Austrian Airlines Group suffered a A60.4 million ($95.3 million) loss in the first quarter, widened from a A16.3 million deficit in the year-ago period, which prompted the company to say it expected a fall in full-year adjusted EBIT "due to the time-lagged effect of measures implemented through adjustment of fares and surcharges." Despite the "continued deterioriation in market conditions," OS has not given up on expansion. It will add two leased Premium Service A320s in 2009 and continue to build its network in Central and Eastern Europe and the Middle East, which CEO Alfred Oetsch said "will distinguish" Austrian from its competitors. First-quarter revenue fell 6.4% to A525.3 million as the airline continued to "redimension" its long-haul segment. Costs dipped 0.3% to A593.5 million as fuel prices offset the benefits of network rationalization. Adjusted EBIT was a A42.2 million loss compared to a A20.6 million loss in the year-ago period. The company flew 4.13 billion RPKs during the quarter, down 16.6% year-over-year, against a 14.6% decline in ASKs to 5.7 billion. Load factor fell 1.8 points to 72.5%. Passenger numbers rose 2% to 2.3 million. In March it flew 1.52 billion RPKs, down 12.7%, against a 13.9% fall in ASKs to 2.01 billion. Load factor rose 1 point to 75.6%. Apr 28, 2008
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