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ibusinesslines.com August 15, 2018


Lufthansa Prepares to Buy Parts of Air Berlin in $1.8 Billion Deal

12 October 2017, 04:53 | Kelvin Horton

Lufthansa Prepares to Buy Parts of Air Berlin in $1.8 Billion Deal

Lufthansa Prepares to Buy Parts of Air Berlin in $1.8 Billion Deal

Air Berlin PLC (AB1.XE) said Thursday it agreed to sell parts of its business to Deutsche Lufthansa AG (LHA.XE) for a total of 210 million euros ($248.5 million).

"We will see a milestone in the history of Lufthansa and Air Berlin today", Mr. Spohr told Rheinische Post.

Flights continued after a transitional loan of €150m from the German government.

It said late last month that negotiations with Lufthansa and Britain's easyJet (EZJ.L) would continue until October 12.

Photo Lufthansa, Germany's largest airline, said it expected to take over 81 planes from Air Berlin, a low-priced carrier that filed for insolvency this summer.


According to Reuters, Lufthansa will acquire Air Berlin's subsidiaries Niki and LG Walter, as well access to take-off and landing slots at Air Berlin's hubs at Berlin's Tegel airport and at Duesseldorf airport.

Shares in Lufthansa rose more than 3% to top Germany's Dax index after the chief executive's comments and upbeat notes from analysts.

Speaking on Thursday, Spohr indicated he expected the deal would receive approval from the European Union by the end of the year, which would allow Lufthansa to stabilise operations within six to nine months.

HSBC analysts lifted their target share price to 29 euros from 25 euros (£22.38), citing the imminent agreement with Air Berlin, a new multi-year labour deal with pilots announced this week and a positive trading performance this year.

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.



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