ibusinesslines.com
ibusinesslines.com December 17, 2017


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

12 October 2017, 04:53 | Kelvin Horton

Lufthansa may pay about 6 million for around 80 planes of Air Berlin. File

Lufthansa may pay about 6 million for around 80 planes of Air Berlin. File

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.



Other News

Trending Now

ECP issues non-bailable warrants for Imran Khan
Naeemul Haq, spokesperson of PTI stated that the party will file a review petition in the Islamabad high court against the order. The move comes after Khan repeatedly failed to appear before the five-member bench of the electoral commission.

Kobe Steel Crisis Deepens As More Data Tampering Revealed; Shares Tumble
Kawasaki Heavy Industries and Mitsubishi Heavy Industries (MHI) supply parts to Boeing including for its 777 Dreamliner. It's not the first time Kobe Steel has been caught up in falsifying data.

Coolest Things Facebook Announced At Oculus Go Launch Event
The new VR device is developed to be more compact, more powerful graphics, along with cameras that will use inside-out tracking. However, there's also a 3.5mm headphone jack for private listening, or for when you're getting on your housemates' nerves.

Ghana aim to silence home crowd to ensure victory against India
Goalkeeper Dheeraj Singh calls for even more support against Ghana. "It's Ghana next and it's important to take the game to them". If not for the second spot, Ghana and India be eyeing to finish as one of the best third-placed sides.

Italy's Gucci bans fur, joining others in seeking alternatives
Burberry was targeted by protesters during London Fashion Week over its continuing use of fur in its collections. So we commend Gucci's compassionate decision, and for helping to ensure that the future of fashion is fur-free'.

JPMorgan opens earnings season with $1bn fixed income fall
Norges Bank bought a new position in JPMorgan Chase & Co. during the fourth quarter worth approximately $2,897,377,000. Skba Capital Management Llc increased Hp Inc stake by 209,600 shares to 694,300 valued at $12.14 million in 2017Q2.

Google Duo to be integrated with Android Messages, Contacts, and Phone app
As the flagship devices from the creator of the platform we know and love, the new Google phones are highly anticipated products. Tomorrow, you'll be able to walk into a Verizon store and check Google's latest phones out.