Most of the airport was privatized in 2018 and will be nationalized again in 2023. The Lilihill Group and the country could not agree on anything after years of constant disagreement. The economic future of the loss-making airport is up in the air. A long legal battle looms.
This has never happened before in Austria: a privatization that is reversed after five years. Optimism reigned in 2018: the real estate entrepreneur Franz Peter Orasch (“Lilihill Group”) acquired 75 percent of Klagenfurt Airport through a capital increase of 8.1 million euros, with the state and the city retaining the blocking minority.
However, his plans to create an “aviation city” on the model of Vienna-Schwechat fail due to the constant disagreement between the owners. Now the country is pulling a “call option” and buying back the shares – with taxpayer money. This has been made possible because the number of passengers has fallen below 100,000 in 2022. But that was only because there were still corona restrictions, Lilihill argues and is appealing. A year-long process is ahead. But now the Carinthian holding company has taken over the helm.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
