German airline Lufthansa is the only contender to have launched a takeover bid for ailing flag-carrier Austrian Airlines.
A source close to the matter confirmed to AFP that Lufthansa was the sole bidder for Austrian after a bidding deadline passed.
Lufthansa was the only one of the three interested companies to have lodged a firm bid for the airline, the source said, contradicting an earlier media report.
Air France-KLM and S7 of Russia had also expressed interest but did not present a formal offer.
Air France-KLM is still interested in further discussions but 'the economic and financial context... do not allow us to make a firm bid as demanded by the seller,' a spokeswoman for the Franco-Dutch group said.
The deadline for firm offers passed at 11am Irish time today after months of media speculation about which airlines might step in to help take over AUA during difficult times for the airline sector.
The state-owned holding company OeIAG is looking for a buyer for its 42.75% stake in AUA, after the Austrian government gave it until the end of the year to find a partner.
Austrian Airlines has nearly €900 million of debt. It sustained a first-half loss of €48.7 million this year and is projecting a full-year loss of up to €90 million.
According to terms of the sale, 25% of AUA's capital must remain in Austrian hands so as to safeguard jobs and maintain Vienna as the airline's main hub.
