Consolidation of Regional Flight Segment

As part of the Austrian Airlines Group’s wider effort to continue to prepare itself for intense competition in civil aviation and to implement production specialisation on the internal and external levels, the Group is to bundle together its personnel and operational units working in the regional flight segment.

With its fleet of three 50-seater Embraer jets, Rheintalflug will be integrated into Tyrolean Airways in the course of the coming year. This will enable the Austrian Airlines Group to enter the market with a newly constituted regional airline from 01.01.2003 onwards. The legal, operational and marketing dimensions of this integration are currently being developed and defined within a number of internal projects. The Austrian Airlines Group will publish further detailed information about developments in the course of autumn 2002.

Vagn Soerensen, Chief Executive Officer of the Austrian Airlines Group, made the following statement on the strategic background to the new measures: “If we are to act faster and more flexibly in future and want to furthermore exploit synergies, we need to reduce complexity within the Group. The handling of all regional traffic by a single, specialised production company is an important step in this direction. This structural adaption will be conducted with social consciousness. Our decision does not in any way alter the fact that the Austrian Airlines Group views Vorarlberg and the Lake Constance region as an important market. It is for this reason that Altenrhein will retain its core position within our network.” Addressing himself to the colleagues of Rheintalflug, he states: “The Rheintalflug-Team has done an excellent job so far. This spirit will also be preserved within the new constellation!”