Etihad plans to use the Niki fleet and network as the foundation for the launch of a new leisure-focused airline group in April in partnership with European travel industry conglomerate TUI.
Etihad Airways has purchased Air Berlin's 49.8% share in Austrian low-cost carrier Niki for US$319 million.
Etihad plans to use the Niki fleet and network as the foundation for the launch of a new leisure-focused airline group in April in partnership with European travel industry conglomerate TUI.
The new airline company will be headquartered in Austria and will have a fleet of approximately 60 aircraft to travel from Swiss, German and Austrian markets to a broad network of destinations, including the Canaries, mainland Greece, and Spain and the Balearics, Etihad said.
Regulatory authorities must still approve the deal between Etihad and Air Berlin. Etihad emphasised Monday that it would own just 25% of the new airline group, while TUI would own 24.8% and the majority 50.2% would be held by the Austrian foundation Niki Privatstiftung.
Etihad's Niki purchase serves as an important cash infusion for struggling Air Berlin, which in September announced a downsizing and restructuring that would focus operations on long-haul flights and on high-yielding business routes from Berlin and Dusseldorf.
In September, Air Berlin agreed to lease up to 40 medium-range Airbus A320 aircraft to competitor Lufthansa Group.
Bolstering Air Berlin is a key for Etihad, which owns a 29.2% stake in the company, making it the largest shareholder.
Source: Travel Weekly USA