Lufthansa to take over large part of Air Berlin

Thursday, 12. October 2017 10:38

A contract scheduled to be signed on Thursday will put a significant section of failed Air Berlin Plc and Co. Luftverkehrs KG under control of its larger German competitor. Deutsche Lufthansa AG's chief executive Carsten Spohr confirmed the agreement has been achieved, after earlier indicating it may concern 81 aircraft and 3,000 out of 8,000 employees. 

The country's flagship airline, a component of the DAX stock index, will thus acquire select assets after committing to an investment of €1.5 billion euros in total. The purchase of the airplanes alone may cost it €200 million. Integration may take one year, while clearance from European Union regulators is expected within three months, Spohr added. He has warned about declining prices in the sector.

Lufthansa rallied 2.8% to €25.25 in Frankfurt at 10:22 am CET, while Air Berlin spiked 46.01% to €0.24 euros.

Related Links: Deutsche Lufthansa AGDeutsche Lufthansa AGAir Berlin PLC
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