Air France-KLM lodges formal complaint with European Commission

Air France-KLM has taken part during Fall to the initial bidding process leading to the privatization of Austrian Airlines but had unfortunately to come to the conclusion that it was not in a position to submit a financial proposal in accordance with the instructions imposed by the Austrian Industrieholding (IAG).
 
It is now known that the agreement reached on December 5, 2008 between the Austrian Authorities and Lufthansa does not follow the instructions imposed during the bidding process on Air France-KLM and is in particular conditioned to a 500 mio debt cancellation by the Austrian State and based on a potential considerably lowered equity price for the State shareholder.
 
Air France-KLM strongly believes that the sale of Austrian Airlines to Lufthansa is not being conducted in the best interest of Austrian Airlines stakeholders and at a fair market price. This sale therefore entails State Aid elements that need to be thoroughly investigated by the European Commission.

(c) Centre for Asia Pacific Aviation. Date posted: 12-Dec-08