Austrian Airlines has called on partners Swissair and Tyrolean to support it in the battle against rivals Lauda Air and Lufthansa as the German Monopolies Commission investigates whether Lufthansa's influence on Lauda is a dominating one.
The German carrier owns 39.7 per cent of Lauda Air, with a further 39.7 per cent retained by chairman Niki Lauda and the remaining shares owned by independents. The GMC's investigation was due to be completed this summer but additional evidence from Austrian has delayed the procedure and the commission should now finish in autumn.
Austrian claims there are now two Lufthansa representatives on Lauda's board. Lauda says the new member, Peter Thoele, is a former Lufthansa employee now working for Lauda. More important, says Austrian, Lufthansa has also negotiated a place on Lauda's shareholders' committee.
This committee's main areas of influence are in the handling of capital, management business allocation, partnerships, subsidiaries and the foundation of foreign branches. Issues must be approved unanimously before going for board approval. The German carrier could yet veto developments that might prove disadvantageous to Lufthansa.
But Niki Lauda maintains that the shareholders committee could not be interpreted as a means of control. 'We are an independent company,' he says. He has denied rumours that Lufthansa will have an option on buying a majority stake in Lauda in 1998. Lauda could then lose third country traffic rights; an attraction for Lufthansa is Lauda's Vienna hub. Austrian says it believes Lufthansa's financial support of new Lauda air routes to be illegal. Lauda insists the European scheduled routes will break even in three years.
Source: Airline Business
