According to one of the leading German newspapaers, Handelsblatt, Lufthansa will be taking over Germany’s second largest airline, Air Berlin. During the past years, Air Berlin’s success has not been the best, due to its bigger rival, Lufthansa. Air Berlin’s staggering debt increased up to 1 billion euros.
Carsten Spohr, Lufthansa’s CEo, and James Hogan, Ehitad Airways’ CEO (owns 30% of Air Berlin and supported it by financing it through troubled times) appointed Thomas Winkelmann as the new CEO of Air Berlin after the prior CEO being fired by the board. Winkelmann has now been made in charge to manage the integration of Air Berlin into Lufthansa. Furthermore, this project has been approved by the state and federal governments in Germany.
Lufthansa taking over Air Berlin outcome:
- Air Berlin’s assets will be split up (Lufthansa already currently leases 38 medium and short hail aircrafts from Air Berlin)
- Niki, Air Berlin’s subsidiary will now enter a joint venture with Tuifly.
- Aircrafts left from Air Berlin’s fleet will be integrated with Lufthansa.
- A 6.8% rise was noted in Air Berlin’s shares on the stock exchange due to the publication of the agreement.