Georgian conflict ruins S7s chance of buying AUA: exec

"The conflict is an enormous handicap," S7 managing director Vladislav Filev told the German financial daily Boersen-Zeitung.

The Russian carrier’s chances of buying a stake in Austrian Airlines "are not very good given conflictual relations with Georgia and with the West," he explained.

Even without the problems created by Russia’s invasion of Georgia, western countries are wary of Russian investors who are suspected of pursuing political as well as financial objectives.

"I am well aware that Russia is not mentally a part of Europe. We have a different ethic and living conditions, which leads to a different way of seeing things," Filev said.

"We are often more emotional and less rational than westerners."

Austrian Airlines would nonetheless be an "ideal extension" of the international network that S7 sought to create, he added.

The sale of heavily indebted Austrian Airlines has attracted the interest of German carrier Lufthansa and Turkish Airlines officially, while Air France/KLM and Air China are also believed to be considering an offer.

Austrian authorities are expected to decide on a buyer by the end of the year.