UPDATE 1-Flughafen Wien interested in Prague airport

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NEW Flughafen Wien wants to expand in eastern Europe and is interested in Prague's Ruzyne airport, the Vienna airport operator's chief executive said.

"We are looking at further projects in eastern Europe and we are interested in Prague's airport," Herbert Kaufmann told journalists late on Tuesday on the margins of an investment conference in New York.

In September, the Czech government approved a plan to convert the state-owned Prague airport into a joint stock company and wants to complete the sale by end-2008.

Last year, the airport had 11.6 million passengers and made a net profit of 972 million crowns ($176 million) on sales of 5 billion crowns.

Czech media quoted the airport's director, Miroslav Dvorak, last week as saying it had attracted interest from dozens of potential bidders, including major airport operators and financial investors.

Regarding Vienna airport, Kaufmann said he expected growth rates in passenger numbers for 2007 to exceed a forecast 8 percent, as it had already done so in the first nine months.

For 2008, Kaufmann expected that passenger growth rates would exceed average growth in Europe.

"It will be very positive (next year), because some of the low-cost carriers have not operated throughout the whole year this year," he said, adding he expected that more airlines would fly to and from Vienna next year.

"We brought 12 new airlines (to Vienna) this year and we are having more talks," he said. "But one could not expect that we can add as many as that every year."

Kaufmann said Flughafen Wien would give a more detailed outlook in January.

By 0921 GMT, Flughafen Wien shares traded up 2.3 percent at 77.55 euros, outstripping the Austrian blue chip index ATX which was up 0.63 percent. (Reporting by Eva Komarek, writing by Karin Strohecker; Editing by Paul Bolding and David Cowell)

($1=5.525 Crown)

Keywords: FLUGHAFENWIEN/

[YORK/Reuters/Finance.cz]