Vienna - Lufthansa AG on Friday signed a deal in Vienna to buy 41.65 per cent of Austrian Airlines from Austria's state holding OeIAG, creating Europe's biggest airline.

The debt-ridden flag carrier will be sold for the token price of 366,000 euros (465,000 dollars), OeIAG confirmed in a statement.

On Wednesday, the German carrier announced that it planned to take over 100 per cent of its smaller Austrian rival, first through the privatization, and then through buying free-floating shares.

The total price is expected to amount to 377 million euros.

One condition for the sale is that the EU approve a 500-million- euro cash injection for restructuring from the Austrian government. (dpa)