Transfer from Austrian to Tyrolean: Austrian Supreme Court Requests Clarification from European Court of Justice

The Austrian Supreme Court informed Austrian Airlines in a court ruling served to the airline today that it must request clarification from the European Court of Justice on several legal issues. Accordingly, issues relating the after-effect of the Austrian Airlines collective wage agreement for the flight crew has not yet been clarified. Legal experts of Austrian Airlines are convinced that their legal opinion will also be confirmed by the European Court of Justice. They anticipate that it will take at least one year until this question will be fully clarified.

Whereas the Austrian Supreme Court should clarify the after-effect of the collective wage agreement of the former Austrian Airlines flying staff, the Vienna Labor and Social Affairs Court is dealing with the specific legal repercussions of the transfer from Austrian to Tyrolean with respect to employment and labor regulations. The court has also not yet made any decisions on this matter.

At the beginning of 2012, the Austrian Airlines Group initiated a comprehensive restructuring program in order to ensure the continuing operations of the domestic airline. A key aspect of this restructuring drive was the transfer of the company’s entire flight operations to its subsidiary Tyrolean Airways as at July 1, 2012. Prior to this the collective wage agreement of the flight crew was rescinded by the Federal Economic Chamber. In response the trade union terminated the collective wage agreement at Tyrolean Airways.