Lufthansa to Take Over Austrian Airlines

Lufthansa has finally confirmed that they plan on taking Austrian Airlines over. The confirmation came on Monday when a spokesman for the carrier confirmed that they are preparing to place a bid in becoming the majority holder in the shares of Austrian Airlines, following Lufthansa registering their interest in buying out the 43% stake of the government in Austrian Airlines . The spokesman also absolutely denied the press reports that the carrier was becoming involved in a bail plan with Alitalia.

This news sent the stock of Austrian Airlines rocketing by 7.9%, which is 39 euro cents, to 5.35 euros during Vienna trading on Monday. This makes the first time that Lufthansa has announced their interest to the public in buying out Austrian Airlines, which has suffered much, its shares falling 37.5% since last year. Lufthansa has continued to stay on the sidelines during the last year, refusing to get drawn in on the bidding with Alitalia or Iberia. However, it is clear now that they plan to nab the Austrian carrier from underneath Air France KLM, who has also been reported as being interested in the deal.

Austrian Airlines might not be a big acquisition, as the airline is valued at 450 million euros right now, however, the carrier will do great things for the exposure of Lufthansa in Eastern Europe, pending the deal is completed. Austrian Airlines is also focusing on 2 growth areas, Eastern Europe and the Middle East, of which they hope will offset their losses during the era of record high oil prices, as well as an increase in competition.

Go to www.lufthansa.com -or- www.aua.com to learn more.