by Beth Williamson July 20th, 2009
Lufthansa says that the ball is now in the hands of the European Commission. This is something that they said after they submitted a new package of concessions to the European Commission in a bid to win approval for its takeover of Austrian Airlines.
A Lufthansa spokesperson said that they have now made a new offer, and it is now up to the European Commission to make their choice on what to do next. Right now Lufthansa refused to comment on the details of the new plan, but confirmed that they did involve a number of routes.
The airline said that they did the max that they could do to still make this business takeover worth it. This new package was submitted after the European Commission said that further competition concerns on routes out of Vienna needed to be addressed.
If this deal is rejected as well, then the European Commission would be able to wait to make an announcement on the deal until November 6. Lufthansa has already indicated that it would just simply walk away from the deal if concessions make the takeover of the Austrian airline uneconomical.
Under the current terms of the contract, Lufthansa can walk away from the deal if it is not signed by July 31. However, Lufthansa has told the media that it did not wish to walk away from the deal if the European Commission did not make a quick choice.
Austrian Airlines has already noted that, if the deal goes under, it would need an €1 billion boost to stay active. This is almost twice what the Austrian Government had promised the airline.