Austrian Government,AUA Believe In Lufthansa-AUA EU-OK By End-July
July 10 2009 - 11:08AM
Dow Jones News
The Austrian government still believes Deutsche Lufthansa
(LHA.XE) and the European Commission will reach an antitrust
compromise that makes the sale of Austria's flagship carrier
Austrian Airlines AG (AUA.VI) to its German peer this summer
possible, a finance ministry spokesman said Friday.
"We are in constant contact with both Lufthansa and the
commission, and we are convinced they are both working hard to
reach a solution," finance ministry spokesman Daniel Kapp told Dow
Jones Newswires, dismissing concerns that the two parties may lack
the will to seal the deal before a crucial end-July deadline.
Earlier Friday, a commission spokesman said Lufthansa has failed
to address the commission's concerns regarding anticompetitive
effects of the deal, and that it is now unlikely that the antitrust
clearance will be granted before July 31, a deadline condition for
the public bid set in the contract by Lufthansa.
"The war of nerves is intensifying, but it is our clear
impression that both sides are still working towards a compromise,"
Daniel Kapp said.
The Austrian Finance Ministry is administratively responsible
for the state-entity that holds Austria's controlling minority
stake in Austrian Airlines and is, as such, also representing
Austria's position on the political level.
Austrian Airlines said they trust that the parties will do their
utmost to make sure the deal goes through, a spokeswoman said
Friday.
"If the will is there, the merger can definitely function, also
with certain antitrust conditions. And we think the will is still
there, both on E.U.-side and on Lufthansa-side," Austrian Air
spokeswoman Patricia Strampfer said.
-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10;
flemming.hansen@dowjones.com