MADRID (AFX) - Spain's Public Works Ministry said it is 'closing a deal' for German charter flight company LTU to take over no-frills airline Air Madrid's routes and the majority of its workforce, confirming earlier reports.
A ministry spokeswoman said the agreement is nearly finalised but declined to confirm details.
El Pais reported that LTU's operations would begin by the end of January, considering that all the aviation authorities in the Latin American countries where Air Madrid operated have agreed, with the exception of Argentina.
LTU is reportedly not taking on any of Air Madrid's debt under the agreement.
Air Madrid filed for bankruptcy in December after abruptly suspending operations shortly before the Spanish government was set to revoke the airline's licence because of safety breaches.
LTU was not immediately available for comment. afxmadrid@afxnews.com ccs/jdy/wj COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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