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Showing posts with label Sabena. Show all posts
Showing posts with label Sabena. Show all posts

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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Transatlantic Experiment

Contrary to most European flag carriers, which had operated transatlantic service to the United Stares and Canada with quad-engined DC-4s since World War II, Austrian Airlines had maintained its medium-range route system until April 1, 1969.  It had been at this time that it had stretched its wings across the Atlantic with a large-capacity, intercontinental Boeing 707-320, registered OE-LBA and chartered from Sabena Belgian World Airways, which had been deployed on the Vienna-New York route with an intermediate stop in Brussels.  This so-called “transatlantic experiment,” despite Austrian’s delay in launching it, had ultimately proven both a premature and financially unsound one for two primary reasons:

1. The home market had still been too small.

2. Vienna-Schwechat had been insufficiently developed as a hub, providing few connecting flights to which this transatlantic service could transfer passengers.

Resultantly, after a two-year trial, the 707 had been returned to Sabena on March 31, 1971, leaving Austrian once again to concentrate on its primarily continental route system for which nine short-to medium-range, low-capacity McDonnell-Douglas DC-9-30s had been ordered.

Similar in overall design to the Caravelle, but manufactured in the United States, the t-tailed jetliner offered a slightly higher passenger capacity, greater payload capability, a higher gross weight, more powerful engines, and improved economy, and with it Austrian entered a new era which would span almost two decades.  It had later described this design as “the start of something big, classical and still modern.”  The first DC-9-30 had been delivered on June 19, 1971 and the type soon proved to be the mainstay of its fleet.

In 1974, Austrian leased a McDonnell-Douglas DC-8-63F, registered OE-IBO, from Overseas National Airways (ONA) for cargo services to Hong Kong, but these were later discontinued.  Other than the 707-320, the DC-8-63F was its only other large-capacity, long-range, quad-engined jet.

So versatile and popular had the DC-9 design proven itself to be, that Austrian later ordered five stretched, higher-capacity DC-9-50s.  The first of these had been delivered on September 14, 1975.

That these twin-engined aircraft and the discontinuation of its transatlantic service were proper strategies for the Austrian national carrier had been reflected by its positive growth.  On June 26, 1974, for example, a new maintenance base had been opened at Schwechat International Airport-Vienna.  Its value had also continued to swell: in 1967 its share capital had increased by AUS 140 million to AUS 290 million.  In 1969, it had further increased to 390 million.  And in 1962 it had reached the one billion mark.  During each of the three years, from 1972 to 1974, it had posted a profit.  Its route system had equally expanded: in 1976, Austrian had stretched its wings to Cairo in the Middle East and to Stockholm and Helsinki in Scandinavia.

Demand, soon outpacing capacity, had necessitated an initial order for eight McDonnell-Douglas DC-9-80s to replace its existing DC-9-50s.  Also designated DC-9 Super 80, this aircraft had been a more modernized version of the previous –50 series variant for medium-range deployment and featured a further fuselage stretch for still higher capacity and refanned, higher-thrust, and more fuel-efficient Pratt and Whitney JT8D-209 engines.  Austrian, which shared the distinction of being launch customer for the design with Swissair, inaugurated the first elongated DC-9-81 into service on October 26, 1980 on the Vienna-Zurich route with aircraft OE-LDR “Wien.”  The twin-jet was later redesignated MD-81 and quickly became the short- to medium-range workhorse of its fleet.

New additions to its ever-expanding route system included Larnaca in 1979; Jeddah, also in 1979; and Tripoli in 1981.

Another 1980 milestone had been the foundation of Austrian Air Services (AAS), which would eventually become a wholly-owned subsidiary, to operate Austrian domestic routes with two 19-passenger, twin-turboprop Fairchild Swearingen Metro II commuter aircraft.  The first such service had been operated on April 1.

Austrian plied smooth skies.  Indeed, its 1980 balance sheet had indicated a AUS 71.5 million net profit, its tenth consecutive one.

The MD-81, intemittently proving itself to be as optimally suited to its route system as the twin-jet SE.210-VIR, the DC-9-30, and the DC-9-50 had been, was followed by its shorter-fuselage derivative, the MD-87, which Austrian ordered on December 19, 1984 for lower-capacity route sectors, and the Austrian Air Services fleet was equally upgraded with the addition of two 50-passenger Fokker F.50 twin-turboprops which were ordered on September 25 of the following year.

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