Austrian Air Wants Government Help To Secure Russia Permit Extension
January 22 2010 - 11:35AM
Dow Jones News
Austrian Airlines AG, the Austrian unit of Deutsche Lufthansa AG
(LHA.XE), said Friday it hopes the Austrian government will
intervene on its behalf to help secure an open-ended extension of
its Russian landing rights.
After the ownership of Austrian Airlines was transferred from
the Austrian state to the airline's larger German peer last year,
Russian authorities scrutinized AUA's license to operate flights to
and from Russia, a license that is conditional on the airline being
Austrian-owned.
In trying to mitigate this problem, Lufthansa carried out the
takeover of Austrian Air via a Lufthansa-controlled Austrian
holding company, but it is uncertain whether Russia will accept
this model.
"We are assuming that this is a political question that also
needs to be solved politically," Austrian Air spokesman Michael
Braun told Dow Jones Newswires.
Braun said the airline expects to be granted a temporary
extension of its license, which will expire with the end of the
winter flight plan in March, but also that it will be impossible to
negotiate an open-ended extension after this time without the help
of the Austrian government.
However, Braun said AUA remains confident that the two countries
will be able to reach a common understanding.
-By Kirsten Bienk, Dow Jones Newswires; +43 1 513 69 22 10;
kirsten.bienk@dowjones.com(Flemming Emil Hansen in Vienna
contributed to this article.)