November 4, 2019 / 5:06 PM / 9 months ago

Austrian Airlines plans to cut 500 jobs to reduce costs: source

FILE PHOTO: Planes of Lufthansa unit Austrian Airlines are parked at Vienna International Airport in Schwechat, Austria March 22, 2018. REUTERS/Leonhard Foeger/File Photo

FRANKFURT (Reuters) - Austrian Airlines, owned by Germany’s Lufthansa (LHAG.DE), plans to lay off around 500 staff as part of efforts to reduce annual costs by about 100 million euros ($112 million), a person familiar with the plan said on Monday.

The carrier has faced increasingly stiff competition from low-cost carriers including easyJet (EZJ.L), Wizz Air (WIZZ.L) and Ryanair’s (RYA.I) Laudamotion on short-haul routes out of its base, Vienna.

The plan to reduce costs is due to be officially announced on Thursday, when Lufthansa publishes its third-quarter results.

Austrian Airlines declined to comment.

Austrian media reported the cost-cutting plan last week. Austrian Airlines now has just over 7,000 employees, roughly 1,200 more than after the last round of job cuts in 2012.

Reporting by Ilona Wissenbach; Additional reporting by Kirsti Knolle in Vienna; Writing by Francois Murphy; Editing by Edmund Blair

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