Deutsche Lufthansa AG has officially entered the bidding process for Austrian Airlines, which is being privatized by the Austrian government, the German carrier confirmed Monday. "We have officially expressed our interest," a spokesman for the the German said.

Andreas Bartels said, hours after the Sunday deadline for sending letters of interest to OIAG, the state-controlled holding that wants to sell its 42.8-per-cent share in Austrian Airlines.

Austrian media and commentators see Lufthansa as the front-runner in the privatization.

However, several other airlines that are reported to be interested in Austrian Airlines' and its focus on Central and Eastern European destinations.

Air China, Air France-KLM, Russian carrier S7 Airlines, and Turkish Airlines have been named by Austrian media as other companies that would likely bid for the Austrian flag carrier.

OIAG declined to comment on the number or names of interested companies. A shortlist of candidates would be presented to the holding's supervisory board on September 12, a spokeswoman said.

Austrian Airlines lost a net 48.7 million euros (72.1 million dollars) in the first half of 2008, while Lufthansa made a net profit of 402 million euros.

The Vienna government green-lighted the privatization on the condition that a controlling minority stake of 25 per cent plus one share remain in the hands of Austrian owners.

Austrian financial groups and OIAG currently hold 50 per cent plus one share of the airline's capital.