Austrian Airlines has fired its CEO Alfred Oetsch, and COO Peter Malanik and Chief Commercial Officer Andreas Bierwirth have taken over his responsibilities.

The airline late today local time confirmed media reports in Austria that had been circulating all day. Oetsch has been criticized for his late turn to seek a strategic partner for the airline. He has been CEO for almost three years, but many observers believe crucial time was time lost to initiate a fundamental turn-around of the airline.

Austrian was instead hurriedly sold to Lufthansa late last year. Regulatory approval by the European Commission has not yet been achieved, and may take until summer. The Commission has ordered an in-debth study into Lufthansa's planned take-over of Brussels Airlines and indicated that it might demand significantly more remedies than expected. If the same standards are applied to the Austrian case, that approval is likely to be delayed, at least.

If Lufthansa cannot invest as quickly as possible, Austrian might run into a serious financial crisis. It was forced to seek a EUR200 million bridge loan by state holding OEIAG to keep operating until Lufthansa would come on board. OEIAG expected the transaction to be completed in April. That schedule may no longer be valid.

Austrian media report that already EUR80 million of the 200 million have been burnt and that the airline might be forced to ask for a second loan. Also, the carrier might have to cut up to 2,000 of its 8,000 jobs to scale down in size and reduce losses, sources suggested.

Neither Austrian nor Lufthansa were prepared to comment today. However, employees are to be informed about the situation at a Friday assembly in Vienna.

It is also unclear whether Malanik and Bierwirth will head Austrian permanently or might be replaced by a new CEO once Lufthansa comes in. Bierwirth is the former CEO of Lufthansa affiliate Germanwings and Malanik has been a long-time, well-connected and well-liked Austrian executive.

Photo credit: Austrian Airlines