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Atlantic Excellence

Once again yielding to airline deregulation-necessitated realignment and endeavoring to further attain cost-reducing synergies, Austrian Airlines had integrated its JFK operations with Sabena and Swissair on March 1, 1998 under the Atlantic Excellence Alliance, forming the first tri-carrier station.  Although the employees of the three carriers had continued to wear their respective uniforms, they had operated from single passenger service and load control offices, utilizing a joint Austrian, Sabena, and Swissair check-in facility, and equally handled each other’s flights.  During the peak summer season, seven daily departures operated by four airlines had been offered.

The Atlantic Excellence station had been comprised of eight functions, including Control, Arrivals, Departures, VIP/Special Services, Ticketing, Load Control, Ramp Supervision, and Trouble Shooting.  Because Swissair had already been contracted to provide Malev-Hungarian Airlines’ load sheet services, the Load Control function itself had entailed handling some six aircraft types, inclusive of the 747, the A-340, the MD-11, the A-330, the 767, and the A-310, and the Atlantic Excellence integration had often required inter-carrier training courses.

As had singularly occurred with Austrian Airlines, Delta had equally concluded reciprocal two-letter code-share agreements with Sabena and Swissair, but now took the former marketing arrangement to full alliance status at Delta’s significantly-maturing New York-JFK flight hub.  Delta continued to provide the ramp and baggage room functions for all three Atlantic Excellence airlines.

In August of that year, Austrian had taken delivery of the first of four longer-range, higher-capacity A-330-200s, registered OE-LAM and configured for 30 business and 235 economy class passengers, and the type had ultimately replaced the workhorse A-310-300 fleet.  The four aircraft, later operating with a reduced business class capacity of 24 when the Grand Class concept had been introduced, had included the following registrations:

1. OE-LAM

2. OE-LAN

3. OE-LAO

4. OE-LAP

During the summer timetable of 1998, JFK had fielded its first dual-aircraft type operation, with the first departure standardly operated by the A-330 and the second by the A-310.

Star Alliance

Although an ultimate “Swissport Solution,” under which all Atlantic Excellence JFK ground staff would be transferred to the ground-handling company, had been envisioned, the eventuality had never played out.  Rumors, rumbling through the station like the gentle forewarnings of a pending storm, had pervaded the atmosphere by mid-1999.  A new strategy seemed to loom on the horizon and its seeds, planted long before it had bloomed, had been multi-faceted and omni-encompassing.

1. In June of 1999, Delta Air Lines and Air France had formed the fundamental basis of a new global alliance, later named SkyTeam, thus dissolving the 25-month Austrian/Delta/Sabena/Swissair Atlantic Excellence Alliance whose agreement, without renegotiation, would have expired in August of 2000.

2. Despite an agreed investment limitation of 10%, Swissair had nevertheless attempted to purchase additional Austrian Airlines stock, precluding Austrian’s goal of autonomous identity and independent ownership and forcing it to withdraw from the Swissair-led Qualiflyer Alliance of European carriers.

3. Swissair and Sabena had formed a combined commercial management structure, which again had proven contrary to Austrian Airlines’ independent direction.

4. In early 2000, both Sabena and Swissair had concluded a code-share cooperation agreement with American Airlines, a US airline-alignment counter to Austrian Airlines’ US feed strategy.

Austrian Airlines, a small, but profitable international carrier of considerable quality, had nevertheless needed the reach of a global alliance to remain financially viable and thus concluded a membership agreement with the Lufthansa- and United-led Star Alliance, which had become effective on March 26, 2000.  Still the largest and longest-running alliance, it had then been comprised of Air Canada, Air New Zealand, All Nippon, Ansett Australia, Austrian Airlines, British Midland, Lauda Air, Lufthansa, Mexicana, SAS, Thai Airways International, Tyrolean, United, and Varig, and had collectively carried 23-percent of the world’s passenger traffic.  At the same time, the decision had permitted continued independent identity and autonomous operation, yet expansion potential for both the airline and its Vienna hub.  Expressed as a sentiment, the decision could be stated as, “Here we grow again!”

The transition from the Atlantic Excellence to the Star Alliance, having commenced as early as January 2000, had entailed four integral changes:

1. An entirely new IT (information technology) system and frequent flier program.

2. The operational relocation to a new terminal, passenger service office, passenger check-in counter, load control-aircraft dispatch center, and gate at JFK.

3. New alliance airline code-share flights and traffic feed had resulted in the closing of the Atlanta station and the subsequent opening of the Chicago and reopening of the Washington stations in the US.

4. The company-wide migration training in Oberlaa, Austria.

Star Alliance membership, once again entailing a relocation to Terminal One at JFK, had prompted another handling carrier change, from Delta to Lufthansa, which had now performed the Baggage Services and Passenger Check-In functions, while Austrian itself had continued to act in the capacities of Arrivals, Ticketing, Load Control, Ramp Supervision, and Management.  Under a reciprocal agreement, it had also provided these passenger services to Lufthansa for its own Frankfurt departures during non-operational hours.  Aircraft loading and baggage room functions had been provided by Hudson General, which had later been renamed GlobeGround North America.

In a further cost-reduction strategy, Austrian Airlines had relocated to a smaller, lower-rent Passenger Service office on the ground floor of Terminal One in September 2002, at which time the Load Control/Ramp Supervision function had been awarded to Lufthansa.  No longer serving Lufthansa’s flights, the Austrian staff had been further reduced to six full-time and two part-time positions and the daily shift hours had decreased from nine to eight.

Austrian’s largest-capacity aircraft, the A-340-300--accommodating 30 business class and 261 economy class passengers--had intermittently also provided service to JFK, particularly during the summer 2002 timetable when a late Saturday departure had been scheduled.  Two such aircraft had then been in the fleet:

1. OE-LAK

2. OE-LAL

9. Swissport USA

The consistent thrust to reduce costs had resulted in yet another handling-company change at JFK on January 1, 2003, when most of the ground services had been transferred from Lufthansa to Swissport USA.

In preparation for the change, the Swissport passenger service staff had attended the Guide Check-In course in Vienna in December 2002, while one Swissport agent, who had structured the Baggage Services department, had attended the World Tracer Basic course in October of the following year.

Outfitted in Austrian Airlines uniforms, the Swissport staff had performed the Arrivals, Lost-and-Found, Passenger Check-In, Departure Gate, Load Control, and Ramp Supervision functions, while Austrian itself had continued to provide Ticket Sales, Administration, Supervision, and Management services.  Load control, which had initially been performed in Terminal 4 using the Swissair DCS system, had been transferred to Terminal One and the Lufthansa-WAB system after the Swissport operations personnel had completed a computerized load control course in Vienna that March.

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