Singapore Airlines and Aeroflot not interested in Austrian Airlines

Singapore Airlines and Russia’s national carrier, Aeroflot, have both indicated that they have no interest in purchasing Austrian Airlines, despite numerous media reports which have hinted at their interest in the privatization process. As we reported earlier this week, Austria’s government has decided to sell its 43 percent stake in the Central European country’s flag carrier. Even though Aeroflot and Singapore Airlines are not interested in the loss making Austrian Airlines, most analysts believe that Lufthansa very much is and that it will submit a bid in the coming weeks. The flag carrier, however, will have to act quickly, as interested parties must inform Austrian authorities of their intentions no later than August 24^th, 2008.

Even though Lufthansa is almost certainly interested, the carrier remained tight lipped and told journalists that it must still investigate whether or not a merger with Austrian Airlines “makes sense.” Some analysts believe that the Austrian government’s insistence that at least 25 percent of the airline remain in Austrian hands will not appeal to many foreign investors and that Lufthansa may only agree to submit a firm offer if it is given a guarantee that it would be able to buy out other shareholders in the future.

While a Singapore Airlines and an Aeroflot bid now seem to be out of the question, Lufthansa will be one of the most serious bidders. It is possible, however, that it will face some competition from Air France-KLM and perhaps even from Air China. These airlines provided no comment on whether they were interested in Austrian Airlines, but also did not deny speculation that they may submit a bid.

Thank you to CNN Money for the initial report.

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