Austrian Airlines cuts 930 jobs

Austrian Airlines is to cut 930 jobs in a bid to cut costs.

The airline says trimming 12% of its workforce will save £40.9m.

It says the redundancies will be made across the group by the end of 2002.

Austrian Airlines had earlier revealed that its management would take a 15% pay cut next year.

An agreement has been reached with staff representatives over greater cuts in open holiday pay, unpaid holiday and part-time working models.

Early retirement options and part-time contracts for staff approaching retirement age are also being proposed.

The company has also delayed the delivery of a Boeing 737-800 until November, 2002; an Embraer jet will now be delivered in 2003 instead of 2002; three Airbus A320s will arrive in 2005 instead of 2003; and a Boeing 777 will arrive in 2005 instead of 2004.

Further postponements of aircraft deliveries are being negotiated as the company suffers from the effects of the US terror attacks.

The airline states: "The difficult economic situation in which the Austrian Airlines Group now finds itself will demand sacrifices from all who work for the company.

"We will do whatever it takes to ensure that these absolutely necessary job losses are implemented in a way that is as socially acceptable as possible."