Lufthansa to bid for stake in Austrian Airlines

The German national airline, Lufthansa, has made announced that it is interested in buying a share of financially-troubled Austrian Airlines, according to a spokesman for the carrier.

Candidates interested in considering purchasing a part of the Austrian carrier were given until this past Sunday to request information from Merrill Lynch, the investment bank handing the transaction.

The spokesman for Lufthansa would not elaborate, however, on the size of the stake that the German airline would seek to acquire.

Earlier in August, the government of Austria decided that it would sell up to 100 per cent of the national airline, although it was expected that a minority blocking stake comprising 25 per cent of the shares would most likely be held on to by private Austrian investors or the holding company for the government, OEIAG.

Austrian Airlines was hit hard by the soaring cost of jet fuel, and is expected to post a loss of as much as 90 million euros for this financial year. The carrier is also burdened by heavy debt.

Lufthansa has for some time been considered the airline best placed to acquire a significant stake in Austrian, and is also a partner of the carrier in the Star Alliance.

Air France-KLM, the leading force in the rival alliance, Sky Team, is reported to be interested in acquiring a share in Austrian Airlines as well.

www.lufthansa.com