Vienna - Passenger numbers at troubled carrier Austrian Airlines declined by 1.1 per cent in 2008, as business caved in amid the global economic crisis in the third quarter, the company said Thursday.

Lufthansa is set to take over the Austrian flag carrier, pending approval from the European Commission.

The airline's long-distance flights were hit the hardest, with passenger numbers dropping 9.4 per cent year-on-year. In December, numbers fell by 13.1 per cent from the same month in 2007.

Bucking the trend, 6.2 per cent more seats were filled on flights to Eastern Europe and the Middle East.

"It can safely be assumed that that the sharp drop in demand, which was noticeable in November and December, will continue in the months to come," said chief executive Alfred Oetsch. Scheduled flights were reduced by 4.7 per cent last year.

In early December, a contract was signed under which Lufthansa is to take over 42 per cent of the flag carrier's stakes currently held by an Austrian state industry holding.

The deal is still pending, as the European Commission still has to approve the Austrian government's takeover of half of the airline's total debt of some 900 million euros (1 billion dollars). (dpa)