Former F1 driver Niki Lauda skids past rival bidder IAG to secure eponymous airline

Former racing champion Niki Lauda has beaten rival bidder IAG for control of his eponymous airline - REUTERS

Former Grand Prix driver Niki Lauda has thwarted an attempt by British Airways owner IAG to snap up his eponymous airline, which ceased flying last month.

IAG had planned to splash €36.5m (£32m) on major parts of Niki, including 15 aircraft and some take-off and landing slots in Austria and Germany, but legal complications linked to the sale have scuppered its advances.

The Niki airline landed in trouble last year when its parent Air Berlin filed for bankruptcy, prompting bids for parts of both airlines. The process of Air Berlin’s insolvency was overseen by German courts and it was presumed the country had jurisdiction over Niki as it was an entity of Air Berlin.

But because Niki was registered in Austria, the home country of its founder, two courts there ruled that they should be in charge of the airline’s future.

This meant IAG’s bid, which was agreed with German authorities last month, was deemed to be void and it had to resubmit its proposal to Austrian authorities, which it did on January 19.

The aviation group, which also owns Iberia and Aer Lingus, has now said it is "disappointed" to report that its bid has been unsuccessful.

Mr Lauda’s private jet charter business Laudamotion has been selected by Niki’s creditors as the best owner, and the three-times Formula One world champion said he would merge the airline into his company and rebrand the carrier.

The decision is likely to have frustrated IAG’s boss Willie Walsh, who is understood to have wanted to use Niki’s planes to help grow its fledgling low-fare long-haul carrier Vueling, which launched last year.

Mr Lauda founded Niki in 2003 and sold his remaining stake to Air Berlin in 2011.