Published: Fri, October 13, 2017
Markets | By Rosalie Gross

Lufthansa is Gobbling Up Bankrupt Air Berlin

Lufthansa is Gobbling Up Bankrupt Air Berlin

Air Berlin, considered second most important airline in Germany, said Lufthansa group would take over airline companies, Walter (LWF) and 20 aircraft, as well as Air Berlin subsidiaries.

The budget Irish airline said it would take the €210m deal to European competition authorities.

"Today will be a milestone in the history of Lufthansa and Air Berlin", said Spohr in Berlin ahead of the expected official announcement that a formal deal has been agreed between the airlines.

Air Berlin is one of three European airlines to become insolvent in recent months.

Air Berlin filed for bankruptcy in August after its main investor Etihad Airways pulled out.

More news: NYPD to Re-Examine Harvey Weinstein Sexual Assault Probe, Sources Say

Earlier this week, dpa reported that the airline said in a letter to employees that flights under the airline code AB "according to the current state of things, will no longer be possible after October 28 at the latest".

In August, Ryanair CEO Michael O'Leary slammed the government intervention as a "stitch up", in August, and called on the European Union competition authorities to block a Lufthansa takeover.

Lufthansa shares were up over 2.9%, which was the highest mover on the DAX market index in Germany in Thursday morning trading.

Air Berlin said that it remains in negotiations with EasyJet and other bidders for other portions of its assets.

In 2016, Air Berlin showed a record 782 million euros in losses - a 75 per cent increase compared to 2015 - which the company attributed to restructuring costs and depreciation.

Like this: