S7 Said to Offer $377M for Austrian Airline

S7 is offering to pay the Austrian government 300 million euros ($377 million) for its stake in Austrian Airlines, Wirtschaftsblatt newspaper reported, citing an unidentified S7 spokesman.

S7 wants the government to assume the same amount of Austrian Air debt as it would in the case of Deutsche Lufthansa, the Vienna-based newspaper said in a preview of an article to be published Wednesday.

Lufthansa is proposing to pay a nominal price for the carrier and has demanded that Austria take on 500 million euros of the airline's debt, the newspaper said.

The financing of the purchase price is secured, the spokesman said. S7, which has an "extensive concept" for the airline and the Vienna airport, does not plan to cut any jobs or destinations as it needs this to "maintain its growth plan," the report said.

The Austrian government is in the process of selling its 42 percent stake in the country's largest carrier.