Austrian Airlines is terminating base maintenance activities at its Tyrolean Technik turboprop support facility in Innsbruck.
The Lufthansa Group carrier says 80 of the site's 110 employees are affected and will be offered replacement jobs at Austrian's Vienna base. A social plan is being prepared for staff members who are unable to relocate.
Tyrolean Technik will from July concentrate on line maintenance services alone.
Austrian's chief executive Kay Kratky states: "Naturally, we are aware of the fact that the situation itself is a difficult one, as is the prospect for people to relocate."
A driving distance of some 500km (310 miles) separates the two bases.
Tyrolean Technik's base maintenance activity is concentrated on supporting Bombardier Q400 turboprops for Austrian and third-party customers.
The airline says that third-party maintenance demand for the type has been declining for several years, but especially after last year's demise of Air Berlin, which had operated a Q400 fleet. Tyrolean Technik's location is not competitive, Austrian adds.
Base maintenance checks for Austrian's Q400s fleet will take place "at a different location, for cost reasons", the carrier notes. "We cannot bear the millions in additional costs for heavy maintenance," states Kratky.
In 2015, Tyrolean Technik was established as a wholly owned, standalone Q400 maintenance provider as part of a reorganisation of Austrian's flight operations. Now, the maintenance facility is to be again integrated into Austrian, the carrier says.
Line maintenance is provided for a range of aircraft types.