The Executive Board of Star Alliance member Austrian Airlines has announced it will transfer the company’s flight operations to its subsidiary, Tyrolean Airways, effectively establishing the regional carrier as the new national carrier of Austria, albeit not in name. The move will take place on July 1, 2012 when Austrian’s current fleet of around 80 aircraft and 2,100 members of operations staff will be pooled with those of Tyrolean.

In a statement, the Executive Board of Austrian Airlines said this measure “will secure the future of Austrian Airlines,” as a brand as the step will result in automatic salary increases being abolished, and a modern collective working agreement to be introduced. Ahead of this week’s announcement, more than two weeks of negotiations have been taking place with unions representing staff but Austrian Said it had “proved impossible to reach agreement over principles,” while a recent meeting with the works council of the flight personnel also showed that there was “no longer any chance of achieving a positive vote amongst staff”.

Austrian Airlines CEO said the following: “What our staff need now is clarity. I remain convinced that this path offers us a perspective for the future. And we want to design this future together with the entire Austrian Airlines crew,” said Jaan Albrecht, Chief Executive Officer, Austrian Airlines.

The integration process is now being finalised although it is clear that all flights will continue to be branded under the Austrian Airlines brand but will be operated on its behalf by Tyrolean crews.