Bloomberg, FT Deustchland and other media are reporting that next airline to join LH Group is - OS?

http://www.bloomberg.com/apps/news?p...100&sid=aDTAF5ZBV3Xk&refer=germany

"Lufthansa is "closely observing'' what is happening at the smaller, unprofitable Austrian carrier and is waiting for a "signal'' from the Austrian government, the largest shareholder, the newspaper said. The German company is interested in a "friendly holding,'' the newspaper added.

Austrian Airlines said on May 5 said it's in talks with Saudi investor Mohamed bin Issa al Jaber after he threatened to cancel his plan to acquire a 20 percent stake. Chief Executive Alfred Oetsch has come under pressure after the airline lost 60.2 million euros ($93.4 million) in the first quarter, the newspaper said. "

It looks like LH is looking at 20% stake if the transaction between Saudi and OS goes down, and if Austrian gov't decides to release addional 29%, LH could have 49% of OS. I doubt Austrian gov't would release control package in the first stage...

"Friendly holding" could mean at the end of 2008, LH could have LX, OS and SN under its wings as "legacy carrier" group. Of course, if the company invests in UA/US, we just might have another mega-airliner in making...

If LH eats OS and SN, its fleet will grew to 540 planes, plus 194 on order. That would put LH on the 2nd position of world's largest airlines (DL+NWA 1st, AA would drop to 3rd). Interesting...

[Edited 2008-05-06 09:39:13]