0 min left

Lufthansa Agrees to Purchase Air Berlin’s “Key Assets”

$1.19 billion deal includes up to 61 aircraft and 3,000 jobs, pending challenge from Ryanair

After what Lufthansa Group described as a “signing marathon,” the German flag carrier has finalized a plan to absorb bankrupt competitor Air Berlin. In a press release, the parent of Lufthansa and low-cost carrier Eurowings announced a $1.19 billion deal to purchase key assets of the failed airline.

The deal includes up to 61 aircraft, consisting of 41 Airbus A320 family airframes and 20 Dash 8 Q400 turboprops, in addition to the 15 purchased and five leased from the Berlin-based carrier. The aircraft will join Eurowings as part of an expansion that could grow the discount airline to 81 aircraft. The purchase would also create 3,000 jobs within the Eurowings group, some of which would be would be filled by former Air Berlin staff.

“We now have the great opportunity to take a decisive step forward with Eurowings in Europe,” Carsten Spohr, chairman of Deutsche Lufthansa AG, said in a statement. “With the approval of an additional investment framework for the acquisition of aircraft, the necessary preconditions have now been met.”

However, not everyone is on board with the Lufthansa takeover. Rival carrier Ryanair, who previously expressed interest in buying parts of Air Berin, announced to BBC News they intend to challenge the planned purchase to antitrust authorities. The European Commission will review the plan before giving their approval. Previously, Spohr told the press he expected the deal to close by the end of 2017. Other potential suitors, including the team of Thomas Cook Airlines and F1 champion Niki Lauda, have not announced if they will also challenge the deal.

Comments are Closed.
0 Comments