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Austrian Airlines Ponders Boeing 737 MAX for Fleet Rejuvenation

Synopsis: Austrian Airlines, a member of the Lufthansa Group, is considering the Boeing 737 MAX as a potential replacement for its aging Airbus A320 family fleet. The airline's CEO, Annette Mann, revealed that the decision depends on the allocation of the Lufthansa Group's 40 737 MAX aircraft on order.
Monday, June 17, 2024
Source : ContentFactory

In a recent development, Austrian Airlines' CEO Annette Mann has disclosed that the carrier is exploring the possibility of switching to the Boeing 737 MAX for its medium-haul fleet renewal. The revelation came during the IATA General Assembly in Dubai, where industry stakeholders gathered to discuss pressing matters in the aviation sector.

Austrian Airlines, a subsidiary of the Lufthansa Group, currently operates a fleet of 35 A320ceo family aircraft, with an average age ranging from 19.4 years for the A320-200s to 28.5 years for the A321-100s. The aging fleet has prompted the airline to seek a replacement aircraft to maintain its competitive edge in the market.

While the obvious choice would be to continue with the A320neo, of which Austrian Airlines has already received five, the airline is now considering the Boeing 737 MAX as a potential alternative. The decision, however, is not entirely in the hands of Austrian Airlines, as it depends on the allocation of the Lufthansa Group's order for 40 737 MAX aircraft.

The uncertainty surrounding the 737 MAX allocation within the Lufthansa Group has led to speculation about which airline will receive the new aircraft. Apart from Austrian Airlines, Eurowings, another member of the group, has also been hinted at as a possible recipient of the 737 MAX.

Austrian Airlines' CEO emphasized the pressing need for fleet renewal, stating, "We have to do a lot to renew our short-haul fleet since it's not the newest. It will be very dependent on the Lufthansa Group's decisions about who actually gets the B737 MAX because that's not decided yet. For Austrian, there are two options: either, of course, rolling over with new A320neos or completely switching to B737s."

The airline's narrowbody medium-haul fleet, consisting of A320-200s, A321-100s, and A321-200s, represents roughly 42% of its overall capacity, with a total of 6,348 seats. As these aircraft continue to age, the need for a replacement becomes increasingly urgent to maintain the airline's operational efficiency and passenger comfort.

In addition to the medium-haul fleet renewal, Austrian Airlines has also taken delivery of its first Boeing 787-9 Dreamliner, which commenced operations today with a flight from Vienna to New York. The airline expects to receive a total of 11 new widebody jets in the coming years, with the possibility of increasing the order to 12 787-9s, pending a decision later this year.

However, the CEO noted that adding a 13th Dreamliner might not be realistic given the airline's weak financial returns. "With a margin far below our 2024 target of 5.5%, it will not be realistic anymore to have a thirteenth 787-9. Normally an 8% margin would be ideal for sustainable future investments," Mann stated.

As Austrian Airlines navigates the complexities of fleet renewal and the allocation of new aircraft within the Lufthansa Group, the aviation industry eagerly awaits the final decision on whether the airline will opt for the Boeing 737 MAX or continue with the Airbus A320neo family for its medium-haul operations.

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