• Germany's news in English
 
jobs_header_v3

Arab airline throws lifeline to Air Berlin

The Local · 19 Dec 2011, 09:14

Published: 19 Dec 2011 09:14 GMT+01:00

Facebook Twitter Google+ reddit

A statement said Etihad, which already held a 2.99 percent stake in the cash-strapped Air Berlin, would extend $255 million (€195 million) in credit lines over the next five years.

"Etihad Airways minority stake will consist of 27.03 percent from a new share issue by Air Berlin, funded from operational cash flow, and an existing interest of 2.99 percent (pre-dilution), which will amount to a total interest of 29.21 percent," the statement said.

The new shares will be issued at €2.31 and the acquisition will cost around €53 million, according to a calculation done by news agency AFP.

Air Berlin is trying to trim losses after growing rapidly over the last few years and piling up debt as it ordered dozens of planes.

The move will enable the carriers to have a combined network of 239 destinations, the statement said.

"Etihad Airways and the Air Berlin group carry a combined total of more than 40 million passengers a year, operate 233 aircraft, and employ 18,000 people. Together, the companies generate more than $9 billion in revenues," the statement said.

"We estimate each airline could achieve incremental revenues of between €35 million and €40 million just in the first year, and we believe the partnership has enormous potential to unlock a range of efficiencies."

Etihad chief executive officer James Hogan said the deal was one of the most important in the history of the UAE's national airline.

"This new partnership expands our network reach, gives us access to 33 million new passengers, and provides us with a real opportunity for global growth," he said.

"Through Air Berlin, we gain immediate access to a broad and complementary European market, with outstanding connectivity options for customers of both airlines."

AFP/bk

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit


Your comments about this article

16:03 December 19, 2011 by sebastian2010
I have flown with Air Berlin since they started. Great Airline. Always a pleasure to fly with.
17:18 December 19, 2011 by The-ex-pat
16:03 December 19, 2011 by sebastian2010

Thank you :)............
Today's headlines
Teen's murder-rape arrest reignites refugee debate
Flowers and candles set up in Freiburg to honour the student found dead. Photo: DPA.

The German government pleaded for calm on Monday after the arrest of a teenage Afghan asylum seeker for the alleged rape and murder of a German student triggered fresh criticism of the country's liberal refugee policy.

China criticizes US for blocking sale of German firm
Aixtron's headquarter in Herzogenrath in North Rhine-Westphalia. Photo: DPA

The US is reportedly worried that China could use the firm's technology in its nuclear programme.

Germany should deport sick refugees: Merkel party mate
Rejected asylum seekers in Leipzig being taken to the airport. Photo: DPA.

A top member of Chancellor Angela Merkel's conservative CDU party on Monday defended his proposal for Germany to deport sick refugees after receiving harsh criticism.

Rail worker jailed over train crash that killed 12
Rescue workers at the scene of the crash. Photo: DPA

A German rail dispatcher who admitted that his negligence caused a train crash that killed 12 people has been sentenced to three and a half years in prison.

Why Germany is worried by Italy's referendum result
Italy's Prime Minister Matteo Renzi resigned after a crushing referendum defeat on Sunday. Photo: DPA

Chancellor Angela Merkel lost a key ally on Sunday night.

These are Berlin's seven most exquisite restaurants
Two-star chef Tim Raue. Photo: DPA.

The capital city still hasn't managed to snag three stars in the new 2017 Michelin guide released on Thursday, but it still boasts seven two-star eateries. Here's a look at what they have to offer.

Austrian vote a 'good omen for Europe': German minister
Foreign Minister Frank-Walter Steinmeier. Photo: DPA.

German Foreign Minister Frank-Walter Steinmeier on Sunday said that the far-right defeat in Austria's presidential election was "a good omen" for Europe.

VW bosses forced to pay back private jet costs

Bosses at troubled German auto giant Volkswagen have been forced to pay the company back millions of euros for flights on its private jets, the Bild am Sonntag newspaper reported Sunday.

Germany arrests Marxist militant 'leader'
Photo: Julian Stratenschulte / DPA / AFP file picture

A radical Marxist suspected of belonging to a left-wing extremist group accused of terrorism by Turkey has been arrested in Germany, judicial sources said on Saturday.

Afghan teen arrested over German murder-rape
Photo: Hendrik Schmidt / DPA / AFP file picture

A teenage Afghan asylum seeker has been arrested on suspicion of the rape and murder of a 19-year-old female student in Germany, police and prosecutors said Saturday.

Lifestyle
10 German Christmas cookies you have to bake this winter
Sponsored Article
The key to launching your international career
Lifestyle
Our 10-step guide for doing Christmas just like a German
National
Here's why so many Germans vote for the far-right AfD
National
7 events in Germany that'll make December unforgettable
Lifestyle
7 frosty German sayings to make you a winter wordsmith
National
This is how unequal German society has become
National
Six things you should know about the Lufthansa strike
National
9 ways living in Germany will make you a better person
National
These 10 German Christmas markets cannot be missed
Features
8 German words that unlock amazing secrets in English
Culture
10 German words with simply hilarious literal translations
Lifestyle
7 things Germans do that make foreigners feel awkward
International
Why Donald Trump's grandad was booted out of Germany
National
This is what is really inside your Döner kebab
National
Rejoice! Christmas markets start opening across Germany
Education
These German universities are best at landing you a job
Travel
Why Heidelberg is Germany's most inspiring city
Lifestyle
This soppy German Christmas ad will bring you to tears
National
Here's where Germans speak the best (and worst) English
Culture
10 German books you have to read before you die
Culture
U-Bahn train found filled with autumn foliage in Berlin
Features
Seven German words that unlock amazing secrets about English
Travel
Germany's ten most beautiful towns you've never visited
6,552
jobs available
Toytown Germany
Germany's English-speaking crowd