Lauda Air Boeing 737
In 1979, Grand Prix racing legend Niki Lauda walked away from a record-breaking career to an even more ambitious goal: beginning his own airline. Lauda was a qualified pilot and had name recognition, so his startup Lauda Air, was instantly popular; it began operations with two Fokker F.27 Friendships, flying domestic charters in Austria. Lauda hoped to appeal to the casual and ski traveler: his stewardesses wore red ballcaps and blue jeans, while its aircraft were named after both classic Austrian musicians and contemporary rock artists.
At first, it looked like Lauda’s idea would be a failure: Lauda was competing in a very tight niche market, up against a hostile national flag carrier in Austrian Airlines. Lauda Air was so deep in debt by 1984 that Lauda himself was forced to return to racing to keep the airline going. Fortunately for him, a partnership with Greek travel agency ITAS and the addition of Boeing 737 jets reversed Lauda Air’s freefall, and the company began to turn a profit. The airline also began to get a favorable reputation for excellent service, and Lauda himself continued to have a direct personal influence on Lauda Air: he flew several flights a month himself.
In 1992, Lauda Air partnered with Lufthansa, which was seeking to break into the Austrian market, heretofore dominated by Austrian Airlines. Lauda continued to fly charters, but now moved into scheduled routes as well. As it continually expanded, it cut into Austrian Airlines’ profits, as well as that of domestic carrier Tyrolean Airways. Rather than continue to compete, all three Austria-based airlines signed an agreement of cooperation in 1997: Austrian Airlines would fly routes to main European hubs and the Western Hemisphere; Tyrolean would fly domestic and regional routes, and Lauda would concentrate on charters and Asia. To better help Lauda reach distant destinations such as Australia, Austrian Airlines financed Lauda’s purchase of long-range Boeing 777s.
Lauda Air was hurt badly by the post-9/11 airline downturn as well as the Asian currency crisis of 1997, and by 2001 it was in considerable debt once again. Niki Lauda stepped down and Austrian Airlines bought the controlling interest in Lauda Air’s stock. A merger was completed in 2005, though Lauda Air continued to operate in its own livery strictly as a charter airline. Austrian Airlines’ woes now impacted Lauda directly, leading to a sell-off of its larger airliners. By 2013, when a bankrupt Austrian Airlines was taken over by Tyrolean Airways, the Lauda brand was retired, though one Tyrolean 737 still flies with the Lauda Air livery to keep title to the brand. Lauda himself started another airline in 2003, low-cost carrier Niki.
Lauda Air Boeing 737
In 1979, Grand Prix racing legend Niki Lauda walked away from a record-breaking career to an even more ambitious goal: beginning his own airline. Lauda was a qualified pilot and had name recognition, so his startup Lauda Air, was instantly popular; it began operations with two Fokker F.27 Friendships, flying domestic charters in Austria. Lauda hoped to appeal to the casual and ski traveler: his stewardesses wore red ballcaps and blue jeans, while its aircraft were named after both classic Austrian musicians and contemporary rock artists.
At first, it looked like Lauda’s idea would be a failure: Lauda was competing in a very tight niche market, up against a hostile national flag carrier in Austrian Airlines. Lauda Air was so deep in debt by 1984 that Lauda himself was forced to return to racing to keep the airline going. Fortunately for him, a partnership with Greek travel agency ITAS and the addition of Boeing 737 jets reversed Lauda Air’s freefall, and the company began to turn a profit. The airline also began to get a favorable reputation for excellent service, and Lauda himself continued to have a direct personal influence on Lauda Air: he flew several flights a month himself.
In 1992, Lauda Air partnered with Lufthansa, which was seeking to break into the Austrian market, heretofore dominated by Austrian Airlines. Lauda continued to fly charters, but now moved into scheduled routes as well. As it continually expanded, it cut into Austrian Airlines’ profits, as well as that of domestic carrier Tyrolean Airways. Rather than continue to compete, all three Austria-based airlines signed an agreement of cooperation in 1997: Austrian Airlines would fly routes to main European hubs and the Western Hemisphere; Tyrolean would fly domestic and regional routes, and Lauda would concentrate on charters and Asia. To better help Lauda reach distant destinations such as Australia, Austrian Airlines financed Lauda’s purchase of long-range Boeing 777s.
Lauda Air was hurt badly by the post-9/11 airline downturn as well as the Asian currency crisis of 1997, and by 2001 it was in considerable debt once again. Niki Lauda stepped down and Austrian Airlines bought the controlling interest in Lauda Air’s stock. A merger was completed in 2005, though Lauda Air continued to operate in its own livery strictly as a charter airline. Austrian Airlines’ woes now impacted Lauda directly, leading to a sell-off of its larger airliners. By 2013, when a bankrupt Austrian Airlines was taken over by Tyrolean Airways, the Lauda brand was retired, though one Tyrolean 737 still flies with the Lauda Air livery to keep title to the brand. Lauda himself started another airline in 2003, low-cost carrier Niki.