Only three carriers make Austrian Airlines short-list

Only three major airlines have been included on the short-list compiled by Austria’s government of companies that it would consider selling its 43 percent stake in Austrian Airlines to, over the course of then next three to four months. As was widely expected, Lufthansa made the initial cut, but so did Air France-KLM Europe’s largest airline-as well as S7, a Russian carrier. Most analysts still maintain that Lufthansa is widely favoured by most Austrian ministers, as well as by some high-ranking airline officials. There was, however, some concern in some quarters that Lufthansa may seek to trim down Austrian Airlines, in order to expand Lufthansa’s presence in parts of Central Europe where the Austrian flag carrier is especially strong. Those who have these types of concerns tend to argue that a purchase by Air France-KLM might be more advantageous for Austrian Airlines.

According to a report published in Die Presse, British Airways’ proposal was rejected by Austrian authorities, because it was seen as lacking important details and a truly viable long-term plan for the carrier. Although it is difficult to tell how serious the UK’s flag carrier was about purchasing Austrian Airlines, this may prove to be a blow for the British company, as most major airlines are looking to benefit from consolidation in the industry. If Lufthansa manages to scoop up Austrian Airlines-after purchasing Swiss International Air Lines, as well as Brussels Airlines, it will cement itself at the second largest European carrier.

Thank you to Reuters for the initial report.

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