Scandal with Austrian Airlines
AFP-German airline Lufthansa is the only contender to have launched a takeover bid for ailing flag-carrier Austrian Airlines, a source close to the matter told AFP on Tuesday after a bidding deadline passed.
Lufthansa was the only one of the three interested companies to have lodged a firm bid for the airline (AUA), the source said, contradicting an earlier media report.
Air France-KLM and S7 of Russia had also expressed interest but did not present a formal offer, the source said. The deadline for firm offers passed at 1000 GMT on Tuesday after months of media speculation about which airlines might step in to help take over AUA during difficult times for the airline sector.
The state-owned holding company OeIAG is looking for a buyer for its 42-percent stake in AUA, after the Austrian government gave it until the end of the year to find a partner.
A further deadline stands for bidders to present details of their takeover proposals by Friday and the final announcement on which company will take the stake is to be announced on October 27.
Austrian Airlines has nearly 900 million euros (1.3 billion dollars) of debt and has estimated losses this year in the tens of millions of euros.
According to terms of the sale, 25 percent of AUA’s capital must remain in Austrian hands so as to safeguard jobs and maintain Vienna as the airline’s main hub.
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