Business News

Lufthansa to complete takeover of Austrian Airlines

Sep 3, 2009, 8:05 GMT

Frankfurt/Vienna - German carrier Deutsche Lufthansa AG is to complete the takeover of Austrian Airlines AG Thursday by signing the final contracts in Vienna, said Stefan Lauer, a member of Lufthansa's executive board.

With this deal, the Lufthansa group is to become Europe's biggest carrier, surpassing French-Dutch airline AirFrance-KLM in terms of passenger numbers.

Speaking in Frankfurt, Lauer praised Austrian Airlines' staff for their cooperation in implementing a series of cost-cutting measures that include cutting 1,000 full-time positions among 8,000 employees until the middle of next year.

The ailing Vienna-based flag carrier is to retain its network of destinations, as was the case when Swiss, British Midland and Brussels Airlines joined the Lufthansa group, the manager said.

The German company is to pay a maximum of 382 million euros (544 million dollars) for the takeover, depending on future business development.

The deal cleared the last hurdle in late August when the European Commission agreed to the plan and to the Austrian government's state aid, under the condition that landing rights be given up on routes between Vienna and several German destinations as well as Brussels.



COMMENT

blog comments powered by Disqus

Latest Headlines in Business

Older Talkback

Follow Us

Follow M&C on Pinterest

Search

Custom Search

Also Check Out

Justin Bieber accused of assault

Justin Bieber accused of assault
Justin Bieber has been accused of assaulting a photographer in California after a physical altercation allegedly broke out when the paparazzo attempted to take pictures of the singer and his girlfriend Selena Gomez. ... more

Britney Spears' fiance makes romantic video for her

Britney Spears fiance makes romantic video for her
Britney Spears' fiancee Jason Trawick made a gushing video to tell the singer how proud he is of her US 'X Factor' debut in Austin, Texas, last week. ... more

Gary Barlow is boring

Gary Barlow is boring
Gary Barlow says his family are pleased he has been working on the Diamond Jubilee concert and single - because it has given him something new to talk about. ... more

Demi Moore meets up with Ashton Kutcher

Demi Moore meets up with Ashton Kutcher
Estranged couple Demi Moore and Ashton Kutcher have reportedly met up with each other twice in the last month to discuss the future of their relationship. ... more

Kim Kardashian accuses British Airways of stealing?

Kim Kardashian accuses British Airways of stealing?
Kim Kardashian has accused British Airways of stealing from her baggage after a recent trip to the UK. ... more

Justin Bieber buys $6.5m home

Justin Bieber buys $6.5m home
Justin Bieber has splashed out $6.5 million on his very first home, a seven-bedroom mansion in the Californian suburb of Calabasas. ... more

will.i.am splashes out £15k on laptops for talented youngsters

will.i.am splashes out £15k on laptops for talented youngsters
Will.i.am spent £15,000 on computers for members of a youth music project in London after they impressed him with their talent. ... more

Rochelle Wiseman and Una Healy party on hen night

Rochelle Wiseman and Una Healy party on hen night
Rochelle Wiseman and Una Healy celebrated their forthcoming weddings to Marvin Humes and Ben Foden with a joint hen party on Saturday night (26.05.12). ... more

Justin Timberlake celebrates engagement to Jessica Biel

Justin Timberlake celebrates engagement to Jessica Biel
Justin Timberlake and Jessica Biel celebrated their engagement with a star-studded party at Estee Stanley's Californian home on Saturday (26.05.12). ... more

Jennifer Lopez reunites with Marc on stage

Jennifer Lopez reunites with Marc on stage
Jennifer Lopez and estranged husband Marc Anthony reunited on stage over the weekend at their live finale of their TV talent show in Las Vegas. ... more