Austrian Airlines (AUA) offered to cut its fleet to win European Commission approval for its planned takeover by Lufthansa, the head of AUA's current owner was quoted as saying on Friday.

The head of Austrian state holding company OeIAG, Peter Michaelis, told Austrian magazine Format that AUA's offer to shrink the airline was made to win approval of EUR500 million euros (USD$698 million) in state aid that is part of the Lufthansa deal.

Michaelis also confirmed in the interview that Lufthansa had separately offered to cut some flights to satisfy the Commission, the European Union's executive body, which has to approve the takeover.

"In (AUA's) case (the offer) is about the demand to cut AUA in size because of the state aid; in Lufthansa's case (the offer) is about the antitrust conditions," he said.

"I hope that the Commission will keep a sense of proportion," he said.

Michaelis did not quantify in the interview the number of aircraft AUA had offered to cut, and did not give details about Lufthansa's offer.

The magazine said in a separate article that the number in question was around 20 out of AUA's 95 aircraft, though it did not say whether this was the Commission's demand or AUA's offer.

AUA declined to comment, while OeIAG was not available for comment.