Austrian Airlines cancelled 40 per cent of its flights on Thursday amid a dispute about wages for flight crews, the Lufthansa subsidiary announced in Vienna.
The Austrian carrier grounded 150 flights that had been booked for more than 12,000 passengers.
Staff members conducted a meeting on Thursday to protest management's offer of a 2.1-per-cent wage increase, as well as a 1.4-per-cent one-off payment.
Austrian Airlines spokesman Peter Thier said that management is willing to improve its offer if staff shows some flexibility on work hours.
He pointed out that Austrian Airlines's competitors in Vienna include budget carriers whose operating costs are between 30 and 50 per cent lower.
