Austrian Air to cut costs by 30mn euros

Austrian Airlines will cut away costs of 30 million euros in 2007 through centralised and more efficient corporate shopping structures, Austrian financial newspaper Wirtschaftsblatt Tuesday cited the head of German consulting company Drozak, Jacek Drozak, as saying. Drozak was hired in 2006 by AUA to implement a new corporate purchasing scheme, Prosper, that would allow AUA to up the pressure on suppliers and achieve lower buying prices.

The will mean higher transparency and centralisation of the purchasing processes, as well as closer ties between department representatives and AUA’s central purchasing unit, Drozak told Wirtschaftsblatt.