Austria Gave AUA €150 Million, Now Five New Jets Are Gone

Austria

AUA Loses Five Dreamliners Despite €150 Million State Rescue

VIENNA: Six years after Austria spent millions of euros of taxpayers’ money to rescue Austrian Airlines (AUA) from financial collapse, the national carrier has suffered another major setback. Five brand-new long-haul aircraft originally planned for its fleet will now be transferred to other airlines within the Lufthansa Group, according to Heute.

The decision has raised fresh questions about Lufthansa’s commitment to Vienna and the future of Austria’s aviation industry.

During the COVID-19 crisis in 2020, the Austrian government approved a €600 million rescue package to keep AUA flying. The deal included a €150 million non-refundable state grant, a €300 million bank loan backed by a government guarantee of up to €270 million, and €150 million in additional capital from Lufthansa.

AUA repaid the government-backed loan early in 2022 but was allowed to retain the €150 million grant. In return, Lufthansa agreed to protect Vienna as an important aviation hub through a ten-year location agreement.

However, the airline’s planned fleet renewal has now taken a serious hit.

AUA had expected to receive 12 Boeing 787-9 Dreamliners by the end of 2028. The final five aircraft were scheduled for delivery directly from the manufacturer from late 2027. They would have been the airline’s first brand-new long-haul aircraft in nearly three decades.

Instead, Lufthansa has decided to allocate those five aircraft elsewhere within its group. AUA will now receive only seven Dreamliners: four already delivered and three used aircraft expected from Lufthansa’s existing fleet in 2027.

As a result, AUA’s ageing Boeing 777 aircraft, some nearly 30 years old, will remain in service until at least late 2029 or early 2030.

The decision comes as the airline faces growing financial pressure. Between January and September 2026, its adjusted operating profit fell 37 percent year-on-year to €48 million.

AUA chief executive Annette Mann has blamed high operating costs in Austria, particularly the country’s aviation tax of €12 per departing passenger.

Although Chancellor Christian Stocker has announced plans to reduce the tax, the timing and scale of the cut remain unclear.

For Austrian passengers and taxpayers, the decision leaves an uncomfortable question: after helping save the airline with public money, why is Vienna receiving fewer of the promised investments?

The loss of five new aircraft is more than a fleet decision. It raises concerns about jobs, competitiveness, fuel efficiency and the long-term future of Austria’s most important airline.