2008-06-15 - Austrian seeks partnerAustrian seeks partners as losses mount
Partnersuche gestartet<br /> At the Extraordinary Meeting of the Supervisory Board on 9 June 2008 the Management Board has presented and the Supervisory Board has acknowledged a project to determine the additional result potentials that could be produced by internal optimisation and extra potentials of a strategic partnership.
The project is being carried out by the Board of Management of the company with the support of the Boston Consulting Group (BCG). It will produce initial interim results at the end of July and a detailed recommendation over what action the owners should take by the end of September. Evaluation of the possible effects on the result is based on the current situation of the Austrian Airlines Group, which is under strain due to the high price of kerosene.
The additional costs produced by the extremely high kerosene price and associated difficult peripheral conditions are currently shaping the entire airline industry, which has adjusted its expectations for the current year significantly downwards.
In preparation for the Meeting of the Supervisory Board, Austrian Airlines has carried out new forecasts based on the dramatic increase in the kerosene price in recent weeks. Based on the current price of kerosene and the level of the US dollar, the Austrian Airlines Group calculates that its additional costs for kerosene will reach EUR 130 million this year. Austrian Airlines expects that due to the introduced countermeasures these costs will not fully affect the result and therefore expects that its net result for the financial year 2008 will be within a bandwidth of between EUR -70 million and EUR -90 million. The outlook for the financial year 2009 is strongly dependent on the trend in kerosene prices. While we do not believe that the oil price is likely to remain at levels of US$ 130 or more per barrel in the medium term, it is difficult to estimate when prices will begin falling again as the situation stands at present. Due to the current situation in the industry the previous forecasts for 2009 are outdated. It will not be possible to produce reliable result forecasts for 2009 and subsequent years before the results of the project become available.