Global Economic Secuirty
Lufthansa has agreed to take over a large part of Air Berlin. Lufthansa chief Carsten Spohr said Germany’s largest carrier will take over 81 of Air Berlin’s 140 leased aircraft and 3,000 of its roughly 8,000 employees, while investing €1.5 billion ($1.8 billion).
Negotiations with EasyJet, which is in the running to buy between 20-30 of Air Berlin’s aircraft, are ongoing. Ryanair, the Irish airline, has been critical of the Air Berlin sale negotiations, calling it a conspiracy between Lufthansa and the German government to create a national carrier.
Lufthansa acknowledged last week that its 34% per cent market share in Germany would grow by taking over parts of Air Berlin, but noted its share would be “significantly below 48% — the market share Ryanair has in Ireland.
Air Berlin filed for insolvency in August after Abu Dhabi-based Etihad, its biggest shareholder, decided not to pump in any more money after providing a series of cash injections over the past six years to keep the German carrier afloat.
Air Berlin’s long-haul flights will cease at the end of this week, and tickets for all flights from the end of this month will be invalid!
Fortune.com / AA Magnum Analyst Blog News Site 2017.