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Monday, 5 December 2016

Air Berlin Gets EU300 Million Lifeline From Etihad in Niki Deal - Bloomberg

Air Berlin Gets EU300 Million Lifeline From Etihad in Niki Deal - Bloomberg:
"Air Berlin Plc will receive 300 million euros ($319 million) from Etihad Airways, the main backer of the troubled German airline, gaining an important lifeline as it restructures.

Abu Dhabi-based Etihad will buy Air Berlin’s stake in Austrian leisure-flight operator Niki for more than four times Air Berlin’s market value and will sidestep restrictions on foreign ownership of European airlines by folding the company into an Austrian-based holding.

The transaction is part of a larger deal reached in November between Etihad and tour operator TUI AG to combine airline assets in a leisure market burdened by a glut in capacity. Etihad will end up with 25 percent of the joint venture, which will operate about 60 aircraft with capacity to carry 15 million passengers a year. TUI will hold 24.8 percent, with the remaining shares owned by private foundation Niki Privatstiftung."

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