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Etihad to own 30% shares in Air Berlin
Source: Agencies |
December 20, 2011, Tuesday
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ABU Dhabi-based Etihad Airways is to become the biggest shareholder in troubled Air Berlin PLC, taking a stake of nearly 30 percent, Germany's second-biggest airline and the fast-growing Gulf carrier announced yesterday.
Etihad currently holds 2.99 percent of Air Berlin, and said the stake would grow to 29.21 percent via an issue of new shares.
Etihad is to get two seats on Air Berlin's board of directors, and also is pledging to provide up to US$255 million over the next five years to support fleet development and future network growth.
The announcement comes as Air Berlin, Germany's No. 2 airline after Deutsche Lufthansa AG, pushes through an efficiency drive following losses that it has blamed on high fuel prices, a new German aviation tax and sagging demand for travel to northern Africa.
Air Berlin said earlier it plans to chop some routes and cut 18 aircraft from its fleet of 170 by next summer. Founder Joachim Hunold stepped down as CEO and handed over to Hartmut Mehdorn, a former chief executive of Germany's national railway.
"The strategic partnership with Etihad Airways opens up enormous opportunities for the future of our company," Mehdorn said yesterday. "This applies especially to future market development and the realization of synergies."
"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," Etihad CEO James Hogan said.
As part of the deal with Etihad, the German airline will start operating four flights a week between the German capital and Abu Dhabi in January. It also plans to shift its Middle East operations to Abu Dhabi from the nearby Emirati city of Dubai.
Etihad currently holds 2.99 percent of Air Berlin, and said the stake would grow to 29.21 percent via an issue of new shares.
Etihad is to get two seats on Air Berlin's board of directors, and also is pledging to provide up to US$255 million over the next five years to support fleet development and future network growth.
The announcement comes as Air Berlin, Germany's No. 2 airline after Deutsche Lufthansa AG, pushes through an efficiency drive following losses that it has blamed on high fuel prices, a new German aviation tax and sagging demand for travel to northern Africa.
Air Berlin said earlier it plans to chop some routes and cut 18 aircraft from its fleet of 170 by next summer. Founder Joachim Hunold stepped down as CEO and handed over to Hartmut Mehdorn, a former chief executive of Germany's national railway.
"The strategic partnership with Etihad Airways opens up enormous opportunities for the future of our company," Mehdorn said yesterday. "This applies especially to future market development and the realization of synergies."
"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," Etihad CEO James Hogan said.
As part of the deal with Etihad, the German airline will start operating four flights a week between the German capital and Abu Dhabi in January. It also plans to shift its Middle East operations to Abu Dhabi from the nearby Emirati city of Dubai.
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