Air Berlin gets E300m lifeline from Etihad in Niki deal

Air Berlin will receive E300m from Etihad, the main backer of the troubled German airline, gaining an important lifeline as it restructures. Abu Dhabi-based Etihad will buy Air Berlin’s stake in Austrian leisure-flight operator Niki for more than four times Air Berlin’s market value and will sidestep restrictions on foreign ownership of European airlines by folding the company into an Austrian-based holding. The transaction is part of a larger deal reached in November between Etihad and tour operator TUI AG to combine airline assets in a leisure market burdened by a glut in capacity. Etihad will end up with 25% of the joint venture, which will operate about 60 aircraft with capacity to carry 15m passengers a year. TUI will hold 24.8%, with the remaining shares owned by private foundation Niki Privatstiftung. As part of the deal, Air Berlin will take possession of Niki’s Airbus Group SE single-aisle A321 planes while handing over its Airbus A319 and A320 models to the Austrian partner, the German airline said Monday. With the start of the summer 2017 schedule, Niki will take over Air Berlin’s routes serving southern Europe excluding Italy, as well as North Africa and Turkey. The stake disposal will help Air Berlin’s earnings once the transaction is completed, the carrier said.<br/>