Global Airport News

Lufthansa said it was "confident" it could complete its takeover of Austrian Airlines AUA.VI after the European Commission extended its review of the deal, throwing a spanner into the German carrier's plans.

"Due to the fact that a joint venture has existed for many years now between Lufthansa and Austrian Airlines the opening of the in-depth investigation (Phase II) is surprising for Lufthansa," the German company said in a statement.

Lufthansa had stipulated in its takeover offer the deal depended on receiving regulatory approval from the EU by July 31, yet on Wednesday it said it was "confident of receiving the necessary approvals with acceptable conditions" imposed by Brussels.

A spokeswoman for AUA said the Phase II investigation could be completed by month's end allowing a deal to proceed.

Antitrust authorities at the European Commission expanded their regulatory probe on Wednesday, confirming an earlier Reuters report. [ID:nVIE001415]

"It is essential that airline consolidation does not deprive consumers of a choice of airlines, competitive prices and other benefits of liberalisation of air transport in the EU," Competition Commissioner Neelie Kroes said in a statement.

The European Union executive said it was still looking into state support for Austrian Airlines, the subject of a separate Commission investigation.

Kroes said the EU executive would work closely with Lufthansa in the coming weeks to find timely solutions to address its concerns.

The European Union's executive body has up to three months to decide whether the deal hampers competition and to discuss possible remedies with Lufthansa and Austrian Airlines.