At final turn, racing legend Lauda wins back his airline

Austrian racing driving legend Niki Lauda looked Tuesday to have won a dramatic race for Niki, the airline he founded in 2003 and then ceded to the now-defunct Air Berlin.

In a comeback reminiscent of his 1970s and 1980s Formula One heyday, Niki’s Austrian and German insolvency administrators said at 5:00 am (0400 GMT) that the 68-year-old’s third offer for the airline had been selected.

In doing so, Lauda, who still in bandages famously returned to racing in 1976 just 42 days after a horror crash that nearly killed him and permanently disfigured him, saw off rival offers for parts of Niki from IAG and Ryanair.

In December IAG, owner of British Airways, was given the green light by German administrators to buy Niki and merge it with its budget unit Vueling for 20 million euros ($24.5 million) and 16.5 million euros in fresh liquidity.

But that was declared null and void earlier this month after courts in Germany and Austria ruled that Niki’s bankruptcy proceedings had to move to Austria from Germany, opening up the bidding process again.

The Anglo-Spanish IAG, which had submitted a new bid, said in a short statement on Tuesday that it was “disappointed that NIKI will not be able to develop and grow stronger as part of the Group.”

But Austrian Chancellor Sebastian Kurz hailed the news.

“I’m pleased that Niki is back in Austrian hands,” he tweeted. “The jobs are secure — a good solution for the workforce and for Austria. Many thanks to Niki #Lauda for his commitment.”

Previously, German giant Lufthansa had wanted to buy the holiday airline together with large parts of Air Berlin, but was forced to abandon its plans in December because of EU competition concerns.

Niki, whose fleet of around 20 planes served resorts in southern Europe and north Africa, then opened the insolvency proceedings and ceased flying, stranding thousands of passengers.

Air Berlin, Germany’s second-biggest carrier, triggered bankruptcy proceedings in August after losing a cash lifeline from its biggest shareholder, Etihad Airways, and was grounded in October.

– 100-percent dead –

Lauda was always a maverick, from taking part and winning his first race in 1968 without his parents’ knowledge to multiple twists, turns and comebacks in securing his three Formula One world championships.

Tragedy struck on August 1, 1976 when his car burst into flames during a race at the Nuerburgring in Germany, days after warning that “if your car has a problem, you’re 100-percent dead”.

Suffering first- to third-degree burns over his face and hands and having inhaled toxic fumes, Lauda was given last rites but eventually made what doctors deemed a miraculous recovery.

His return saw him finish fourth in the Italian Grand Prix in Monza and a year later in 1977, he was world champion again. Retiring in 1979 to found Lauda Air, he returned to racing in 1982 and won his third title.

His business nous and combative nature away from the track saw him build up Lauda Air before selling it to Austrian Airlines in 1996. He then founded Niki, selling it to Air Berlin in 2011.

– March takeoff –

British Airways owner IAG had indicated plans to hire about 740 of Niki’s 1,000 employees, but Lauda, bidding together with Britain’s Thomas Cook, wrote last week to workers with a “job offer”.

On Tuesday, after what he called a “long night”, Lauda declined to give any details about his offer but told Oe24 TV that 15 Niki planes would return to the skies at the end of March.

Niki, he said, “has always been my heart and soul… Now I have to organise everything and explain to Niki employees how we can get Niki going again.”

The decision to accept Lauda’s bid, launched via the company Laudamotion, still has to be formally approved in both Germany and Austria, and Lauda needs to secure Niki’s aircraft before the airline can fly again.

burs-stu/spm