Lufthansa Has No Plans To Change Austrian Offer

Lufthansa is not considering amending its offer for Austrian Airlines to appease the European Commission, which has questioned the price and planned restructuring of the deal.

The German flagship carrier's chief executive, Wolfgang Mayrhuber, said on Thursday he expected the Commission to approve the company's takeover of Austrian Airlines.

Lufthansa in December signed a deal for the purchase of the loss-making Austrian carrier, expecting the move to make it Europe's biggest airline.

European airlines, including British Airways and Air France-KLM, are seeking tie-ups to better weather the economic downturn and a slump in demand.

Under the deal, Lufthansa agreed to buy Austrian state holding company OeIAG's 42 percent stake in AUA and take over the airline completely for up to EUR377 million euros (USD$487 million).

The transaction, which needs approval from the Commission, also involves the Austrian state assuming around EUR500 million of Austrian Airlines debt.

The European Commission has said it had doubts on whether the amount of aid had been kept to a minimum and whether Austria's restructuring plan would restore AUA's long-term viability without the need for more funds in the future.

"I assume that the aid will be approved," Mayrhuber told a news conference.

Lufthansa has said it expects to launch the public tender for shares in the last week of February. Its bid is conditional on reaching a 75 percent stake.

(Reuters)