ATW Daily News

Austrian chooses Lufthansa

Friday November 14, 2008

Austrian state holding company OIAG said yesterday that it "will only hold concluding talks with Lufthansa" regarding the privatization of Austrian Airlines Group and that "S7 [Airlines] and Air France KLM are no longer in the bidding process." OIAG now holds 41.6% of Austrian. According to press reports, OIAG indicated that S7's bid did not conform to EU specifications and AF KLM's did not arrive in time. LH reportedly has offered approximately €360,000 ($451,609) for OIAG's stake and has asked the Austrian government to assume some €500 million of company debt (ATWOnline, Nov. 11). OIAG's board is scheduled to meet on Dec. 5, by which time it expects to have reached an agreement with LH. The German carrier did not comment.

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