Austrian Airlines and Mohamed Bin Issa Al Jaber have been in a legal dispute for many years. The entrepreneur originally wanted to join the carrier, which the then AUA boss Alfred Ötsch had publicly described as “restructured”. Shortly after the former general director's statement, it came to light that the AUA was on the verge of bankruptcy.

Initially it was supposed to be about 80 million euros, which Al Jaber wanted to invest in Austrian Airlines. He was already publicly celebrated as the savior of the AUA, but after he realized how dramatic the financial situation of Austrian Airlines actually is, he withdrew his offer. What followed was a years-long legal dispute in the form of mutual complaints and accusations.

The matter could be quite expensive for Austrian Airlines and indirectly for the Lufthansa Group, because in... Last year, the AUA lost in court. Last week, the Vienna Higher Regional Court dismissed the airline's appeal. When asked, Austrian Airlines simply stated that the judgment was not yet final and that it was therefore unable to comment due to the ongoing proceedings.

Al Jaber wants to claim up to one billion euros in damages. The sum is said to be made up of direct and indirect losses he suffered during the 15-year legal dispute. A significant part of this is likely to be legal and court costs, as these are enormous given the high amount in dispute.

The long-standing legal dispute is not yet over

“The courts have once again confirmed that the board of directors of Austrian Airlines behaved unlawfully and to the detriment of all shareholders - and ultimately also the Austrian taxpayers. Hundreds of millions were paid to Lufthansa by the Austrian authorities in subsidies and aid. “If they had accepted my plan, the airline would now be an important regional player and not just a brand – and Vienna would be a hub for air traffic throughout Central and Eastern Europe and the Middle East,” said investor Mohamed Bin Issa Al Jaber. “The courts took more than 15 years to carefully examine all the evidence and clearly condemned the management of Austrian Airlines and exonerated me. Now it is time for the AUA or its owner, the Lufthansa Group, to make amends for the immense damage it has caused to me, my family and my companies. If I don't hear from them soon, I won't hesitate to seek damages and compensation in court."

In March 2023, the Vienna Commercial Court ruled in favor of Al Jaber in a legal dispute with Austrian Airlines. The reason is that an investment contract was concluded in April 2008. The investor later withdrew from this because he felt that the AUA management at the time had misinformed him about the actual financial situation. In this context, the famous statement by the then AUA general director Alfred Ötsch should be mentioned: “The AUA has been renovated”. Just a few days later it came to light that the financial situation was so dire that the carrier was on the verge of collapse.

Austrian Airlines did not want to accept Al Jaber's backing down and took him personally and his company JJW Group of MBI International Holdings to court. This lawsuit was dismissed by the Vienna Commercial Court in March 2023.

Al Jaber wants to sue for damages

The plan was for Al Jaber to initially invest 80 million euros in Austrian Airlines and then make around 150 million euros available for the purchase of new aircraft. According to his view of things, the AUA management at the time wanted to use the funds to plug acute financial holes. He also feels that his reputation was damaged due to the public relations work at the time, which is also an issue in court.

“The ruling by the Vienna Commercial Court is a great relief and has highlighted the misconduct of Austrian Airlines in 2007 and 2008. We now expect the Lufthansa Group to take responsibility for the actions of its subsidiary and its management. This absurd legal dispute with Austrian Airlines has massively impaired my business interests and damaged my company. The years-long legal dispute also damaged my reputation as an investor,” emphasized Al Jaber last year.

Now the investor wants to claim damages against the Lufthansa Group, which he believes is the legal successor to Austrian Airlines. The previous proceedings were not about the amount of possible claims, but were only decided on the merits. It is therefore expected that this matter will keep the courts busy for several years to come. It is also unclear whether Austrian Airlines will challenge the latest ruling before the Supreme Court or not.