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12. 03. 10. - 15:00

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12. 03. 10. - 15:00

Salzburg flight school is bankrupt

Salzburg flight school Flight Track Trainings GmbH entered bankruptcy proceedings today (Fri), the Alpine Land Creditors Association (AKV) reported.

AKV said the firm had debts of around two million Euros. The school said the reason for its bankruptcy had been big customers’ refusal to spend money on training in 2009.

The school’s main customers were Austrian Airlines (AUA) and Tyrolean Airways, which broke their agreement with the school in 2009 because of the recession, according to the media. The school then unsuccessfully sought to attract private students.

Former school customer AUA failed to get back in the black last year as turnover and passenger numbers dropped.

Company co-chiefs Peter Malanik and Andreas Bierwirth said earlier this week that the plan was to continue the ongoing cost-cutting regime in order to get back in the black next year.

They announced turnover had shrunk by 20.3 per cent year on year to 1.96 billion Euros, adding that AUA had had 9.9 million passengers in 2009 – around ten per cent fewer than in the previous year. The co-chiefs also said that AUA had suffered losses before interest and taxes (Ebit) of 93.8 million Euros in 2009.

AUA, founded in 1957, was taken over by Germany’s Lufthansa last September in a deal which, according to many analysts, rescued the Vienna-based firm from bankruptcy.

The Austrian government – formed by a coalition of Social Democrats (SPÖ) and the People’s Party (ÖVP) – decided to bolster AUA with 500 million Euros of taxpayers’ money to ensure Lufthansa took over the ailing firm.

This move was harshly criticised by AUA rivals such as FlyNiki which claimed it would distort competition in the European aviation market.

Austrian Times

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