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Lufthansa's Austrian takeover completed

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Lufthansa's Austrian takeover completed

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Lufthansa has become Europe’s biggest airline with its takeover of Austrian Airlines, but the question now is can it turn around the Austrian carrier, which lost almost 430 million euros last year and has over one billion euros of debt.

Lufthansa has said it will take strenuous efforts to reach its earnings targets for this year. Austrian Airlines’ management is happy it has been saved. Executive Board member Peter Michaelis said: “I am moved because, despite the bad circumstances, something important has been accomplished for Austria.” Analysts said there are no big savings to be made in synergies from combining Lufthansa with Austrian Airlines but the deal should pay off by giving it access to growth regions in eastern Europe.