euro adhoc: Austrian Airlines AG / Strategic management decisions / Supervisory Board approves acceleration of long-haul restructuring and fleet harmonisation

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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01.11.2006

Resolution passed to cut four Airbus A330 aircraft to achieve
fundamental consolidation of Austrian long-haul programme

In an Extraordinary Meeting held on 1 November 2006, the Supervisory
Board of Austrian Airlines AG has approved the proposal of the
Board of Management to cut the Airbus A330 fleet, which consists
of four long-haul aircraft, starting in 2007, in addition to
disposing of both Airbus A340-300 aircraft in 2007. This move
will introduce a fundamental repositioning of the Austrian
long-haul programme and represents a decisive step in the process of
fleet harmonisation.

The reduction of the long-haul fleet will streamline the Austrian
long-range route network. In concrete terms, scheduled services
to Shanghai will be terminated from 7 January 2007, flights to
Phuket, Mauritius and Colombo/Male from the end of April, and
those to Kathmandu in May 2007. Lauda Air will withdraw from
the long-haul charter segment in 2007. The routes to the cities of
Karachi in Pakistan and Chennai (Madras) in India that have
been under evaluation will not be opened up. The new US
destination Chicago will be incorporated into the network from 29
May 2007.

The adjustment of routes that generate losses due to
insufficient direct traffic share is a precondition for profitable
growth in the future. As a consequence of these restructuring
measures the Group expects -based on the losses accumulated in the
current year on the respective routes - a positive contribution
up to EUR 40m per year, which will - according to the Management
Board assumption - reach its full-year effect as of 2009, after
cutback of costs related to these measures.

Disclaimer: This adhoc-release constitutes neither an offer to
sell nor a solicitation to buy any securities. A public offer
of shares by Austrian Airlines Österreichische
Luftverkehrs-Aktiengesellschaft has not yet taken place. Any
securities orders received prior to the commencement of the offer
period will be rejected. If a public offer is made in Austria, a
prospectus will be published in accordance with the Austrian Capital
Market Act.

This adhoc-release is not being issued in the United States of
America (USA) and must not be distributed to "U.S. persons" (as
defined in Regulation S of the U.S. Securities Act of 1933, as
amended) or publications with a general circulation in the USA.
This adhoc-release does not constitute an offer or invitation
to purchase any securities in the USA. The securities of Austrian
Airlines Österreichische Luftverkehrs-Aktiengesellschaft have
not been registered under the Securities Act and may not be
offered, sold or delivered within the USA or to U.S. persons
absent from registration under or an applicable exemption from
the registration requirements of the United States securities
laws.

end of announcement euro adhoc 01.11.2006 20:01:54
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ots Originaltext: Austrian Airlines
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