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October 13, 2017

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Lufthansa to buy over half of Air Berlin’s jets

Source: AFP | 00:01 UTC+8 October 13, 2017 | Print Edition

YEARS of struggle for Germany’s second-ranked airline Air Berlin appeared on their final stretch yesterday, as Lufthansa announced plans to buy more than half the bankrupt carrier’s planes.

The deal has sparked controversy in the European aviation sector, with the German government facing accusations it helped steer the process under a plan to build the Frankfurt-based carrier into an all-conquering juggernaut.

Lufthansa will take over Air Berlin’s Austrian subsidiary Niki, German subsidiary LGW and 20 further aircraft, guaranteeing all jobs at the two smaller firms, Air Berlin said in a statement.

The deal includes 81 of Air Berlin’s 144 aircraft and 3,000 of its 8,500 staff, Lufthansa chief executive Carsten Spohr said in Berlin, hailing it as a “great day” for his company.

Meanwhile, negotiations with Easyjet — the other bidder chosen for exclusive takeover talks — “are continuing”, Air Berlin said, offering no information about what the British firm hopes to buy or whether any Air Berlin staff will keep their jobs.

Spohr has suggested Easyjet is interested in up to 30 aircraft.

Lufthansa has yet to say how much it will pay under the deal, but Spohr told newspaper Rheinische Post yesterday that the group would invest 1.5 billion euros (US$1.8 billion) in its low-cost subsidiary Eurowings following the takeover.

He added that 80 planes was the largest addition to Lufthansa’s fleet that competition authorities would accept.

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