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Last week Ryanair’s CEO revealed about potential Lauda’s switch from all-Airbus to all-Boeing fleet, whereas this week the company has said that there is a possibility of Lauda’s Vienna base closure.
In a statement, Ryanair Group provided that in the fiscal year 2020 Lauda underperformed with fares lower than expected. This happened because of fierce price competition between Lauda and airlines of the Lufthansa Group in core Austrian and German markets.
After the hit of the coronavirus pandemic, Lauda’s entire fleet has been grounded.
While Ryanair Group tries to reduce costs and Lauda’s main competitor, Austrian Airlines, expects to receive an €800 million state aid bailout, “Lauda has had to completely rethink its strategy and significantly lower its growth plans,” the company said.
Therefore, the airline is working on restructurisation plans, cost reduction and possible staff cuts “to secure the future of its Vienna A320 base”.
“Failure to agree meaningful cost reductions on 20 May will result in the Vienna A320 base being closed on 30 May with over 300 job losses,” Ryanair Group added.