Fraport hopes for initial deal soon with Lufthansa in costs row

FRANKFURT, May 23 (Reuters) - Fraport (IOB: 0O1R.IL - news) , the operator of Frankfurt airport, said talks with main customer Lufthansa (Xetra: LHAB.DE - news) about a fee dispute were advanced and that an initial agreement would be signed in the coming weeks.

Fraport and Lufthansa have been discussing fees, costs and other forms of cooperation since Fraport angered Lufthansa by making concessions to Ryanair, enabling the Irish low cost carrier to start flights from Germany's largest airport this year.

"The talks are far advanced. We expect to sign a first agreement in the coming weeks," Stefan Schulte said on Tuesday at the group's annual shareholders' meeting.

Lufthansa said this month the two had reached a deal that would see Lufthansa's costs reduced over a three-year period, but CEO Carsten Spohr said in an interview with Boersen-Zeitung that he wanted a wider deal that would allow the carrier to grow in Frankfurt.

"We together want to find opportunities for growth and new sources of income in order to secure the future and competitiveness of Frankfurt," Schulte added.

(Reporting by Peter Maushagen; Writing by Victoria Bryan; Editing by Tom Sims)