LONDON (Reuters) - Airlines group IAG (>> International Consolidated Airlines Group) is monitoring the situation after a court decided that Niki's insolvency should be handled mainly in Austria rather than Germany, a spokeswoman for IAG said, throwing its deal to buy the Austrian airline into doubt.

"We are monitoring the situation," the spokeswoman said. IAG had previously agreed with the German administrator that it would buy Austria's Niki airline.

(Reporting by Alistair Smout; editing by Kate Holton)