Royal Jordanian bid for stake in Austrian Airlines rumoured

Royal Jordanian Airlines may be ready to make an offer on the government’s stake in troubled Austrian Airlines, as early as some time this week, according to a newspaper report.

Apparently, the privately-held Royal Jordanian Airline has commissioned PricewaterhouseCooper to advise them on a bid for the shares, according to Wiener Zeitung, a major Austrian newspaper.

Royal Jordanian has made no comment as yet.

The holding company for the Austrian government is refusing to comment on the contents of the news article, and a spokesperson explained that any agreement regarding selling the government’s stake in the carrier could not be discussed publicly until there was a government mandate to sell the shares.

Forecasts last month projected the national carrier’s losses for 2008 for reach USD$143 million, as the airline struggles under the yoke of high fuel costs.

The dismal projections prompted the government to engage the services of Merrill Lynch to investigate potential options for the airline, according to media sources that are as yet unconfirmed.

Thomson Financial is reporting that the review will be presented to Austrian Airlines’ supervisory board on 28 July.

Reuters has weighed in that sources report that there is division within the government on the issue of selling the 42.75 stake in the national carrier.

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