Air France-KLM back in AUA race

Cards on the table. Foto: apa

By Mark Kington

Source close to French airline says keen to re-enter race.
Extended deadline ‘tempted’ them back.

Vienna. Air France-KLM is looking to re-enter the race for Austrian Airlines (AUA) after the government set back the sale deadline until the end of the year.

"There’s a lot of interest for AUA. We’ll do everything we can to be able to take part again in the sale process,” a source close to the French airline said.

Originally, three groups - Air France-KLM, Russian carrier S7 and German airline Lufthansa - had all been in the running to buy AUA, but the French side failed to submit a binding offer by the initial end of October deadline.

According to reports yes- terday, Air France-KLM is now seeking ways to re-enter the race now that the deadline has been extended until 31 December.

The government agreed last week to make available up to 500 million Euros in financing to AUA to get it ship-shape for sale.

The carrier has nearly one billion Euros in debt.

Air France-KLM had com- plained to ÖIAG, the state holding company that is sel- ling its 41.56-per cent stake, had not given it ac- cess to information contain- ed in AUA’s contract with the airline grouping Star Alliance.

Lufthansa, on the other hand, which is one of the founding members of Star Alliance, had access to that information, Air France- KLM complained.

The government has ordered ÖIAG, the Austrian state holding company, to sell its 41.6-per cent stake in the loss-making airline.

But the only potential buyer to make a binding offer by the initial deadline was Lufthansa, which rep- ortedly demanded that the state take over 500 million Euros of AUA’s total debt of more than 900 million Euros.

Last week, AUA said it flew even deeper into the red in the third quarter of this year and is forecasting a full-year loss of 100-125 million Euros, as CEO Alfred Ötsch refused calls to resign led by FPÖ boss Heinz-Christian Strache.

Printausgabe vom 04.11.2008