page_title: Austrian Airlines
section_title: Developments from 1990 to 2008
hierarchical_section_title: Austrian Airlines / History / Developments from 1990 to 2008
context_page_description: Austrian Airlines AG, sometimes shortened to Austrian, is the flag carrier of Austria and a subsidiary of the Lufthansa Group. The airline is headquartered on the grounds of Vienna International Airport in Schwechat where it also maintains its hub. As of July 2016, the airline flew to six domestic and more than 120 international year-round and seasonal destinations in 55 countries. and is a member of the Star Alliance.
  The airline was formed in 1957 by the merger of Air Austria and Austrian Airways, but traces its history back to 1923 at the founding of Austrian Airways. Throughout much of the company's existence, it was a state-owned entity. On 31 March 1958, the airline performed its scheduled service, flying a leased Vickers Viscount from Vienna to Zurich and London; it subsequently purchased its own Viscount fleet. On 18 February 1963, Austrian ordered its first jet-powered airliner, the Sud Aviation Caravelle. It subsequently introduced various models and derivatives of the Douglas DC-9 jetliner; by the end of 1971, Austrian was an all-jet operator. During the 1980s, it introduced the DC-9-80, otherwise known as the McDonnell Douglas MD-80, to its fleet.
context_section_description: Throughout the 1990s, many airlines focused on co-operation and alliances. Austrian was one of the first companies to join the Qualiflyer Group, founded by Swissair. This was also a period of quick expansion in the long-haul market, launching new flight paths to China and South Africa. During the late 1990s, Austrian Airlines developed an appetite for acquisitions; during March 1997, it bought a 35 percent stake in Lauda Air while an 85.7 percent shareholding in Tyrolean Airways was acquired in December of that year. Two years later, the airline wholly acquired Tyrolean Airways, making it a subsidiary During 1999, Austrian Airlines launched the ability for customers to book flights via the internet.
  On 26 March 2000, Austrian became a member of Star Alliance. During January 2001, it acquired a majority of the shares in Lauda Air; one months later, the airline also bought all of the shares in Rheintalflug. Austrian Airlines' operating name was shortened to Austrian in September 2003, it also renamed its three constituent carriers during this rebranding. On 1 October 2004, the flight operations departments of Austrian and Lauda Air were merged into a single unit, leaving Lauda Air as a brand name only for charter flights. It had 6,394 employees. Another subsidiary of Austrian Airlines, Tyrolean Airways, specialised in regional flights, having been merged with Rheintalflug during 2002. During March 2004, it launched its Focus East plan, expanding the airline's destinations across Central and Eastern Europe to 38; as a consequence, the Austrian Airlines Group became a market leader within this region.
  In October 2006, Austrian was forced to adopt a stringent cost-saving policy, and in 2007, it eliminated over 500 jobs. Many long-haul destinations were cancelled, such as Sydney via Kuala Lumpur, Melbourne via Singapore, Kathmandu or Shanghai. Three remaining Fokker 70s were sent to Tyrolean Airways. It was also decided to abandon the long-haul Airbus planes, consisting of four Airbus A340s and four Airbus A330s, to standardise the fleet in favour of Boeing 777s and Boeing 767s. Austrian Airlines removed complimentary in-flight meals and alcoholic drinks on short-haul services, introducing what was called a "Self Select Bistro Service", except on flights from London and any flights above 100 minutes in duration. Head office moved from Oberlaa to Vienna Airport in 2007, whereas headquarters remained in Vienna.
  After recording a small profit of €3.3 million in 2007, financial guidance for 2008 had to be changed negatively several times, to a loss of €475 million expected as of the end of November.
caption: An Austrian Airbus A340-200 in 2001 at Kansai International Airport.
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