VIENNA, Dec. 5 (Chinese media) -- The Austrian state holding
company OeIAG signed a contract with German Lufthansa for sale of its 41.56
percent stake in loss-making Austrian Airlines (AUA) after OeIAG's supervisory
board voted in favor of the sale at a special meeting on Friday.
According to the arrangement, the AUA will have a
separate brand while keeping its headquarters in Austria. Lufthansa also planned
to keep long-distance routes, which is important to its headquarters. The
revenue and cost synergies through the AUA integration into the Lufthansa Group
are estimated to be around 80million euros annually.
AUA is headquartered in Vienna and based at the
Vienna International Airport with about 8,000 employees. Due to factors like
price surge in aviation oil, AUA suffered huge loss last year, gaining 900
million euro of debts.
In July 2008, AUA announced an estimated loss of 70
to 90 million euros for the whole year. Therefore, on Aug. 12, the Austrian
government gave the green light to the privatization that is to be finalized by
the end of the year.
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