Air France KLM planning bid for Austrian stake

Air France KLMKoninklijke Luchtvaart Maatschappij (Royal Aviation Company) the flag carrier of the Netherlands and a good example of how acronyms can aid simple discourse. is planning a bid for substantial stake in Austrian Airlines

The airline has confirmed remarks by its deputy ceo Pierre-Henri Gourgeon that it will make a non-binding offer for the 42.7% the Austrian government holds in its national carrier.

Air France KLM is one of a number of airlines which have shown interest in buying the stake since the Austrian government gave the state holding company OAIG the go ahead to sell.

Austrian Airlines has also made it clear that it is looking for a strategic partner to help its development.

Lufthansa, which is also currently seeking a stake in Brussels Airlines, and the Russian airline S7 are among the competing carriers to show an interest in Austrian.

Mr Gourgeon, speaking at the opening of Air France's new terminal at Paris Charles de Gaulle Airport, said a tie up between Lufthansa and Austrian might be an "easier fit" in terms of culture and language.

But he added: "We have to be present in all consolidation discussions in Europe."

He also confirmed that his airline was interested in taking a minority stake in Alitalia.

The Italian national carrier is in the process of being broken up with the profitable parts merged with Air One, a rival carrier, and then sold to a consortium of 16 investors.

Leaders of the consortium Compagnia Aerea Italiana have already submitted a bid to the Italian government and begun talks with Alitalia's trades unions.

Mr Gourgeon said Air France KLM was interested in a stake which could be anywhere between zero and 49%.
Its own plans to take over Alitalia collapsed earlier this year after it failed to reach agreement with the unions.

Alitalia unions reject investors' offer

More than half the unions at Alitalia have turned down contracts offered by the consortium aiming to buy the carrier.

Five of the nine unions at the airline turned down the agreements after a meeting with the airline's new prospective managing director Rocco

Sabelli and officials from the government's labour ministry.

Under the deal to save the airline, which went into receivership last week, the centre-right Italian government agreed to merge the profitable parts of Alitalia with another carrier, Air One, and liquidate the rest. 

A group of 16 investors has since formed a consortium, Compagnia Aerea Italiana, and bid for the carrier. 

But acceptance by the unions of the contracts is a condition of the consortium continuing with its offer. 

A deadline of today (September 11) has been set for an agreement to be reached.