Air France KLM is planning a bid for substantial stake in Austrian Airlines.
The airline has confirmed remarks by its deputy ceo Pierre-Henri Gourgeon that it will make a non-binding offer for the 42.7% the Austrian government holds in its national carrier.
Air France KLM is one of a number of airlines which have shown interest in buying the stake since the Austrian government gave the state holding company OAIG the go ahead to sell.
Austrian Airlines has also made it clear that it is looking for a strategic partner to help its development.
Lufthansa, which is also currently seeking a stake in Brussels Airlines, and the Russian airline S7 are among the competing carriers to show an interest in Austrian.
Mr Gourgeon, speaking at the opening of Air France”s new terminal at Paris Charles de Gaulle Airport, said a tie up between Lufthansa and Austrian might be an ”easier fit” in terms of culture and language.
But he added: ”We have to be present in all consolidation discussions in Europe."
He also confirmed that his airline was interested in taking a minority stake in Alitalia.
The Italian national carrier is in the process of being broken up with the profitable parts merged with Air One, a rival carrier, and then sold to a consortium of 16 investors.
Leaders of the consortium Compagnia Aerea Italiana have already submitted a bid to the Italian government and begun talks with Alitalia”s trades unions.
Mr Gourgeon said Air France KLM was interested in a stake which could be anywhere between zero and 49%.
Its own plans to take over Alitalia collapsed earlier this year after it failed to reach agreement with the unions.
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Stanley Slaughter