Logical Fleet Adjustment at Austrian Airlines

Order for fourth Boeing 777 aircraft converted to three Boeing 737-800. The delivery of the fourth Boeing 777 aircraft, which was originally ordered in 1996, has been put back to 2005 in agreement with the Boeing Company. Following recently concluded negotiations with the American aerospace giant, the order for the Boeing 777 long-range jet is to be converted to orders for three modern Boeing 737-800 medium-range aircraft. Under the deal, which still requires the formal consent of the Supervisory Board of Austrian Airlines AG, the three Boeing 737-800 will be delivered to Lauda Air in April 2005, April 2006 and June 2006.

Vagn Soerensen, Chief Executive Officer of the Austrian Airlines Group, made the following statement about the newly concluded contract: “By taking this step, we have begun to design the future shape of the Group in complete accordance with our policy of operating area specialisation. By converting the deal and providing new access to the most modern and economical medium-range aircraft that Boeing currently produces, we have fundamentally strengthened our holiday flights sector operated by Lauda Air.”

Chief Financial Officer Thomas Kleibl emphasised the fundamental commercial aspect of the new contract: “By working in partnership with the manufacturer, we have been able to conclude this business deal at advantageous conditions that conform fully with the market. As a result, we are in a position to reduce our investment volume once again and adjust our production to available demand. This will strengthen the competitiveness of Lauda Air by providing an excellent aircraft at manageable prices. It all adds up to a great deal for our customers.”

Capt. Christian Fitz, Managing Director of Lauda Air, said the following about the innovations offered by this type of aircraft: “The 737-800 sets new technical standards. At 2.5 metres in height, the so-called ‘blended winglets’ enable the 737-800 to fly higher, further and more quickly than any other aircraft in its class, as well as making it more environmentally friendly. Thanks to the fuel-saving wing technology and quiet, modern engines, emissions are significantly lowered. The highly modern Boeing 737-800 medium-range jet has a maximum range of 5,370 kilometres and maximum velocity of 880 km/h. It offers comfortable seating and the highest levels of cabin comfort for up to 184 passengers.”

Taking into account these three additional B737-800 jets, Lauda Air will operate a total of seven aircraft of this type in its fleet from June 2006 onwards.