Austrian wants to partner with Lufthansa

Austrian Airlines is looking out for buyers and would prefer Germany’s Lufthansa.  Decision to this effect was held by the company’s supervisory board on Monday, July 28.  The board would now approach the Austrian government, which holds 43 per cent stake in the carrier.

Economic slowdown and rising fuel costs have forced the Australian Airlines to seek another airline as its partner.  Three other airlines, Turkish Airlines Air France-KLM and Aeroflot were also considered for the offer. However, majority of the supervisory board’s members preferred Lufthansa.

The ball is now in Austrian government’s court, as it is the final authority with regard to privatisation of the airline.

The board is yet to decide on how much stake it is going to offer and who will be the final buyer, as no airline has been approached by the board as yet

Austrian Airlines posted a net profit of €11.7 million in the second quarter which was better than what was predicted by analysts.  Despite this 52 per cent rise in net profit, the company has given an estimate of €70 to 90 million net losses in the current year.  Shares of Australian Airlines posted a 32 per cent rise on Monday morning. But they lost most of the gains by the end of the day’s session.  Shares ended the day at €3.58, up by just 3.2 per cent but still 37 per cent higher than a week ago.

Austrian government will consider the board’s recommendations at its next meeting scheduled on August 12.

Please visit www.aua.com for more