Austrian Airlines says it is considering a bid for Lufthansa's 20% stake in Lauda Air - a move which would allow it to gain control of the ailing carrier without having to wait until July next year, when it has an option to buy more shares from founder and chief executive Niki Lauda.
Austrian, which already holds a 36% stake in Lauda, is apparently at loggerheads with the smaller airline's supervisory board over its poor financial performance.
Lauda plans to raise Sch1 billion ($62 million) and "guarantee that the books are balanced" by the close of its financial year this week through selling and leasing back five aircraft (Flight International, 24 - 30 October). It says the move will also provide "sufficient liquidity for the forthcoming fiscal year".
Austrian regards the move as a "mere accounting measure", however, and will force its own cost-cutting plan on Lauda, should it succeed in taking control. Lauda has already promised to attack costs by streamlining its network and raising ticket prices to offset the effects of high fuel prices and the strong dollar. Flights from Vienna to Ho Chi Minh City and Lisbon are to be dropped and Bangkok and Australia frequencies reduced.
Source: Flight International
