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Lufthansa completes takeover of Austrian Airlines (1st Lead)
Sep 3, 2009, 10:38 GMT
Frankfurt/Vienna - German carrier Deutsche Lufthansa AG completed the takeover of Austrian Airlines AG Thursday by signing final contracts in Vienna.
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 earlier in Frankfurt, Lufthansa executive board member Stefan Lauer praised Austrian Airlines' staff for their cooperation in implementing a series of cost-cutting measures that include cutting 1,000 full-time positions from a staff of 8,000 through 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 closing documents were signed by the chief executives of Lufthansa, Austrian Airlines and Austria's state holding OeIAG, which sold its 42-per cent stake.
The German company is to pay a maximum of 382 million euros (544 million dollars) for the OeIAG stake and the rest of the shares, 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 plan, under the condition that landing rights be given up on routes between Vienna and several German destinations, as well as Brussels.
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