Austrian court says Niki's insolvency proceedings have to move to Austria

VIENNA: An Austrian court decided on Friday that airline Niki's insolvency has to be handled mainly in Austria, a court spokesman said on Friday, a move that could unravel the agreed sale to British Airways owner IAG.

The court in Korneuburg approved a request by passengers' rights group Fairplane, which argued that as Niki is registered in Austria the case should be handled there. Fairplane also saw a conflict of interest in appointing the same administrators for Niki and its German parent and debtor Air Berlin.

"The main proceedings will take place in Austria," the spokesman said, confirming an initial report by Austrian news agency APA.

A German regional court earlier this week also said that Niki was under Austrian jurisdiction.