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Company Watch - Lufthansa.

Oct 9, 2006

Austrian Airlines To Raise USD$445 Mln After Losses. Loss-making Austrian Airlines plans to raise EUR350 million euros (USD$445 million) in a rights issue backed by key shareholders to underpin a return to profitability, the carrier said on Tuesday. Austrian Airlines said it will offer up to 68 million new shares in the rights issue at close to market prices, probably this year. The Austrian government and a group of Austrian banks will fully subscribe to the issue, Austrian said. Austrian had a net loss of EUR129.1 million (USD$164.2 million) last year and in July scrapped its plan to break even this year, predicting another loss as fuel prices rose. The carrier could not even hedge against high fuel prices recently because its share capital base was too thin to underpin such hedges. Austrian media speculated for months that a bigger rival could buy a stake in Austrian and inject fresh cash, mentioning Germany's Lufthansa and Air France as potential buyers. But Austria's government as well as the chief executives of several large companies said an independent Austrian Airlines with its central European network was an important factor for Vienna as a financial and business hub for the region. Austria owns 39.7 percent in the struggling carrier. A consortium including Bank Austria Creditanstalt, Vienna Insurance Group, Raiffeisen Zentralbank and BAWAG P.S.K. owns 10.3 percent. Oct 3, 2006

Another switch, this time in Philadelphia. Lufthansa now files out of Terminal A-West. Oct 2, 2006

Lufthansa Technik signed a five-year Total Technical Support contract with Nigerian startup Arik Air covering two 737-300s, three CRJ200s and three CRJ900s. Arik plans to launch Oct 17, flying from its Lagos base to 10 domestic and three international destinations. It plans to start intercontinental service next spring. Lufthansa CityLine will provide line maintenance and engineering services on the Regional aircraft. Oct 6, 2006

Editor: Aram Gesar, eMail: edit@AirGuideOnline.com

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Oct 2, 2006
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Publication:Airguide Online
Date:Oct 2, 2006
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