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Boeing 777

When Austrian Airlines had turned the page of its winter 2008-2009 timetable on March 29, JFK had fielded its first Boeing 777-200ER operation, the carrier’s largest capacity equipment and the fifth basic type to have served New York after the A-310, the A-330, the A-340, and the 767.

The aircraft, having originally been acquired by Lauda Air, had been configured for 49 business and 258 economy class passenger, although two later examples, which had featured higher gross weights and modified passenger arrangements, had accommodated 260 economy class passengers in ten-abreast, three-four-three, configurations.

During the six-month period between April and September of 2009, the single flight had carried 34 percent more arriving and departing passengers, along with significantly increased complements of cargo and mail, than the comparable year-earlier period, when the 767 had been deployed.

The four 777 registrations had included the following:

1. OE-LPA

2. OE-LPB

3. OE-LPC

4. OE-LPD

14. Lufthansa Acquisition

2009 had been a pivotal year for Austrian Airlines.   Because of the global economic downturn, escalating fuel prices, eroding yields, and strong competition within Western Europe from low cost carriers, its financial viability and therefore continued existence as a company had been threatened, despite previously unsuccessful attempts to stem its losses by selling its A-330 and A-340 fleet, reducing its long-range route system, and implementing several restructuring plans.  Its savior, in the form of an agreement with Lufthansa-German Airlines to assume its debt and acquire the majority of its shares, had enabled it to continue operating.

On August 28, the European Commission had officially approved the proposed acquisition of the Austrian Airlines Group by Lufthansa-German Airlines, comprised of the 500 million euro restructuring assistance from the state holding company and the merger between the two carriers, thus paving the way toward Austrian Airlines’ integration into the Lufthansa Group by September.  In order to achieve the required antitrust immunity, Lufthansa had agreed to relinquish key flight slots and reduce the number of services between Vienna and Brussels, Cologne, Frankfurt, Munich, and Stuttgart.  For Austrian Airlines, which would become one of Lufthansa’s many independent, European hub carriers, it had signaled financial survival; an improved economic foundation; cost synergies, such as joint fuel and aircraft purchasing; and access to Lufthansa’s extensive international sales and route network.  Austrian Airlines’ own niche within this system had entailed the establishment of Vienna as a high-performance hub for traffic feed to its dense Central and Eastern European route system.

As a result of this ownership change, numerous, fundamental North American changes had occurred.

In Toronto and Washington, for example, agreements had been reached wherein Lufthansa had assumed the ground operations handling at these stations.

In New York, more than half of its Whitestone, North American headquarters, employees had been laid off and the location, for almost a quarter of a century its “fortress” located on the fifth floor of Octagon Plaza, had been closed, with the remaining staff relocating to Lufthansa’s East Meadow, Long Island, facility, and integrating with its staff.

At JFK, Austrian Airlines Cargo had relocated to the Lufthansa facility on November 1, and 16 days later Swissport had passed the ground-handling torch to Lufthansa-German Airlines.

Michael Steinbuegl, Manager of that station for four years, had been promoted to Key Account Manager, North America, but four Ticket Sales-Reservation positions had been rendered redundant when Lufthansa had assumed those functions, reducing the Austrian Airlines’ staff to just three members, all of whom had received limited, six-month contracts which had expired on May 15, 2010.  They had subsequently been integrated into the Lufthansa operation and schedule.

The last Austrian Airlines “red presence,” whether having been created by purely Austrian Airlines or Swissport staff, had occurred on November 15, and the first floor office in Terminal One, hitherto “home” for both the Austrian Airlines and Swissport Management, Passenger Service, Centralized Load Control, Ticket Sales-Reservations, and Baggage Services/Lost and Found Departments, had been relinquished for three desks in the Lufthansa facility, two of which had been Duty Manager stations located on the main level and one of which had been the Key Account Manager position located on the lower level in the Station Operations office.

All things seem to come fully cycle.  The event, effectively ending 21 years of autonomous Austrian Airlines presence, had marked the carrier’s return to its 1938 integration with Lufthansa and its 2000 ground-handling arrangement at JFK.

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