Austrian Airlines announces new price scheme to compete with budget airlines

Austrian Airlines (AUA) and the entire Lufthansa group on Thursday announced a low-price ticketing scheme to compete with budget airlines such as Ryanair.

AUA said the new ticketing model will appeal to "bargain hunters," and give customers more options, with suitcase allowances, lounge access, and gourmet meals able to be booked additionally.

AUA Chief Commercial Officer Andreas Otto told a press conference that from September on the economy class for flights within Europe will be split into three new fare options, the first with no checked baggage allowance referred to as "Light." The other two will be "Classic" and "Flex."

"Light" tickets will be about 10 percent cheaper than the current bottom-end "redtickets," which currently start from 99 euros (109 U.S. dollars) and will then be phased out.

Otto said nowadays about one-third of AUA customers fly only with carry-on luggage, and are therefore paying for a service they do not use.

He also said there will be a limited number of Light tickets per flight, but would not say how much a suitcase would cost, nor if other tickets will increase in price.

AUA's parent company Lufthansa and sister company Swiss will all follow the new tariff model, in the mould of Ryanair and EasyJet, both already having the separate charges for additional options such as check-in luggage and food as a central aspect of their business models, according to Otto.

Otto acknowledged that the budget airlines had grown "more than us" in recent years, and that the AUA has seen its market share at the Vienna International Airport drop below 50 percent.

Fellow Austrian airline Niki as well as its parent company Air Berlin are also to introduce a similar pricing option from May known as "JustFly." Endit