Lufthansa Completes Austrian Airlines Takeover

Lufthansa today completed its takeover of Austrian Airlines, which officially will become part of the Lufthansa Group this month, the carrier said.

Since striking a deal with the Austrian government in December 2008 to gain a nearly 42 percent stake in its home carrier, Lufthansa gained the acceptance for more than 85 percent of the carrier's shares, received European Commission approval and fulfilled all other requirements for the transaction's close.

Once outstanding bids are complete this month, Lufthansa will hold a 90 percent stake in Austrian, and in a statement said it would pay about €166 million to the shareholders. The deal also includes the injection of state aid totaling about €500 million to reduce the airline's significant debts. Lufthansa made the bailout a condition for taking over its ailing neighbor.

Austrian Airlines joins a growing family parented by Lufthansa, which has bought Swiss, Bmi British Midland and a significant stake in Brussels Airlines.