German airline Lufthansa to buy lion's share of Air Berlin's planes

Share

News of the deal pushed Lufthansa shares up more than 3 percent to their highest level in almost 17 years.

Lufthansa CEO Carsten Spohr said earlier he expected the European Union to approve the transaction by the end of 2017.

While it conducted the negotiations, Air Berlin's planes were kept in the air by a government loan of 150 million euros.

"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. So far, there has been no sign of an agreement between Air Berlin and Easyjet for remaining parts of the business, nor has Lufthansa announced how much it will pay under the deal.

EasyJet declined to comment on the progress of talks on Thursday.

As part of the deal Lufthansa will take over Air Berlin's low-priced leisure airline Niki, its LG Walter regional airline as well as 20 additional aircraft - bringing the total to around 80 planes.

Joe Namath admonishes Mike Ditka for 'oppression' blindness
Not experiencing something firsthand isn't an excuse to pretend or claim it doesn't exist, and Ditka simply has no excuse here. With that in mind, it's not surprising that he's already received quite a lot of heat for those comments.

Contempt case: ECP issues non-bailable arrest warrants for Imran
The CEC had observed that it will issue its order in the contempt case if the IHC does not decide the case on October 11. Following this, the Bench has ordered authorities to arrest Imran Khan and present him before the commission on Oct 26.

Details of new Hamas-Fatah reconciliation deal to be announced this afternoon
He said the Palestinian Authority would begin taking control of Gaza's administrative affairs and "security responsibilities". Hamas's reversal was the most significant step toward Palestinian unity since the government was formed in 2014.

That sum includes investment in new planes, for which the board freed up 1 billion euros of funds last month, the purchase price and the costs of taking on new staff.

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, Germany's second largest carrier, will cease operating flights this month, capping a turbulent summer for European carriers.

Industry analysts in Europe said they raised ratings on shares of Lufthansa from market-perform to outperform, saying they believe a deal to acquire part of Air Berlin would add between €70 and €90 million in operating profits annually to Eurowings the budget unit of Lufthansa over the medium term.

The national airline of Italy Alitalia is also in administration and is seeking investors and Monarch the leisure airline based in Britain collapsed at the beginning of October.

Share