UPDATE 1-Vienna Airport halts building of new terminal

* Building work suspended, 2011 target opening date stands

* CEO says aims to keep costs well below 830 million euros

* Shares down 3.2 percent

(Adds detail, share reaction)

VIENNA, June 30 (Reuters) - Vienna airport operator Flughafen Wien (VIEV.VI) has suspended construction of its new Skylink terminal but still expects it to be finished in 2011, chief executive Herbert Kaufmann said on Tuesday.

"There is a building suspension," Kaufmann told Reuters, adding he still hoped to open the terminal by July 2011.

The terminal, which had originally been expected to open last year, has been riddled by delays and cost overruns. Kaufmann said he wanted to keep costs well below 830 million euros ($1.16 billion) and that 400 million had been invested so far.

Flughafen Wien shares were down 3.2 percent by 1030 GMT, underperforming the Austrian blue chip index .ATX which was 0.6 percent higher. (Reporting by Alexandra Schwarz and Boris Groendahl, Writing by Sylvia Westall; Editing by Dan Lalor) ($1 = 0.7143 euro)