Austrian Airlines

euro adhoc: Austrian Airlines AG
Strategic management decisions
Supervisory Board approves acceleration of long-haul restructuring and fleet harmonisation

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Resolution passed to cut four Airbus A330 aircraft to achieve fundamental consolidation of Austrian long-haul programme

In an Extraordinary Meeting held on 1 November 2006, the  Supervisory Board  of Austrian Airlines AG has approved the proposal of the Board  of  Management  to cut the Airbus A330 fleet, which consists of four long-haul  aircraft,  starting in 2007, in addition to disposing of both  Airbus  A340-300  aircraft  in  2007. This move will introduce a fundamental repositioning of the  Austrian long-haul programme and represents a decisive step in the process of fleet  harmonisation.

The reduction of the long-haul fleet will  streamline  the  Austrian long-range route network. In  concrete  terms,  scheduled  services to  Shanghai  will  be terminated from 7 January 2007, flights to Phuket,  Mauritius  and  Colombo/Male from the end of April, and those to  Kathmandu  in  May  2007.  Lauda  Air  will withdraw from the long-haul charter segment in 2007. The routes  to  the  cities of Karachi in Pakistan and Chennai  (Madras)  in  India  that  have been  under evaluation will not be opened  up.  The  new  US destination  Chicago  will  be incorporated into the network from 29 May 2007.

The adjustment of  routes  that  generate  losses  due  to insufficient  direct traffic share is a precondition for  profitable growth  in  the  future.  As  a consequence of these restructuring measures the Group expects  -based  on  the losses accumulated in the current year on the respective  routes  -  a  positive contribution up to EUR 40m per year, which will - according  to  the  Management Board assumption - reach its full-year effect  as  of  2009,  after cutback  of costs related to these measures.

Disclaimer: This adhoc-release constitutes  neither  an  offer  to sell  nor  a solicitation to buy any  securities.  A  public  offer of  shares  by  Austrian Airlines  Österreichische Luftverkehrs-Aktiengesellschaft  has  not  yet  taken place. Any securities orders received prior to the  commencement  of  the  offer period will be rejected. If a public offer is  made  in  Austria,  a prospectus will be published in accordance with the Austrian Capital Market Act.

This adhoc-release is not being issued in the United  States  of America  (USA) and must not be distributed to "U.S. persons" (as defined  in  Regulation  S  of the U.S. Securities Act of 1933, as amended)  or  publications  with  a  general circulation in the USA. This adhoc-release  does  not  constitute  an  offer  or invitation to purchase any securities in the USA.  The  securities  of  Austrian Airlines    Österreichische    Luftverkehrs-Aktiengesellschaft    have not    been registered under the Securities Act and may not be offered,  sold  or  delivered within the USA  or  to  U.S.  persons absent  from  registration  under  or  an applicable exemption from the registration requirements  of  the  United  States securities laws.

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ots Originaltext: Austrian Airlines AG
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Further inquiry note:
Johannes Davoras
Johann Jurceka
Tel.: 051766-1231

Investor Relations
Dr. Prisca Havranek-Kosicek
Tel.: 051766 - 3700

Branche: Air Transport
ISIN:      AT0000620158
WKN:        875224
Index:    WBI, ATX Prime, ATX
Börsen:  Wiener Börse AG / official dealing

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