Vienna - The head of Austria's ailing national carrier Austrian Airlines backpedalled on Friday over the airline's long- standing opposition to strategic partnership with another airline.

Austrian CEO Alfred Oetsch told public radio ORF that the airline's complete independence was no longer an absolute condition.

Even if Saudi investor Mohamed Bin Issa al-Jaber came on board as planned, this would rule out another strategic partner, Oetsch said, marking a complete turnaround from Austria's previous position.

Al-Jaber announced his interest in acquiring a 20-per-cent stake in the airline in March, but indicated on Monday that he may not go through with the deal. He claimed he had been misinformed about the airline's dire financial situation.

Austria reported net losses of 60.4 million euros for the first quarter of 2008.

The environment has changed dramatically, which made it necessary to reconsider certain positions, Oetsch, who had come under massive fire from shareholders for his handling of the situation, said.

Austria's independence should only be maintained if it provided sustainable positive results, he added. (dpa)