Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  Air Berlin Plc    AB1   GB00B128C026

AIR BERLIN PLC (AB1)
Mes dernières consult.
Most popular
Report
SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Lufthansa offers to sacrifice routes to save Air Berlin deal - source

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/30/2017 | 08:42pm CET
A Niki Air Berlin plane is seen at Tegel airport in Berlin

Lufthansa (>> Deutsche Lufthansa) is willing to sacrifice the right to fly some routes to save its deal to acquire assets of Air Berlin, the low-cost airline that collapsed recently, a source familiar with the company's thinking said on Thursday.

Lufthansa (>> Deutsche Lufthansa) is willing to sacrifice the right to fly some routes to save its deal to acquire assets of Air Berlin, the low-cost airline that collapsed recently, a source familiar with the company's thinking said on Thursday.

The German carrier will submit its proposed concessions to the European Commission before a midnight deadline, including giving up so-called 'slots' belonging to Air Berlin businesses Niki and LG Walter, the source said.

Lufthansa last month signed a 210 million euro (£184.9 million) deal to take over Niki and LG Walter, plus some short-haul planes, to cement its position in Germany and expand its Eurowings budget brand.

But the deal has drawn fire from competitors and consumer advocates who fear Lufthansa would dominate German domestic routes and Austria where Niki, founded by retired Formula 1 world champion Niki Lauda, is based.

Lufthansa already owns flag carrier Austrian Airlines.

The German government, which offered a bridging loan to keep Air Berlin flying until a deal could be done to sell its viable operations, held crisis talks with Lufthansa representatives on Thursday afternoon to discuss concessions to offer to Brussels.

A spokesman for the Economy Ministry declined to confirm or deny whether the meeting took place, as reported earlier by the Bild am Sonntag tabloid. Lufthansa and the European Commission declined to comment.

Lufthansa CEO Carsten Spohr met EU Competition Commissioner Margrethe Vestager on Wednesday in Brussels, where sources said the Commission is leaning towards blocking Lufthansa's takeover of Niki.

The Danish commissioner has gone on the record to express concern that Lufthansa's market position would become dominant on some routes as a result of the deal.

GOVERNMENT ALARM

Bild am Sonntag, citing its own sources, said the German government was alarmed that the deal may be blocked and had urged Lufthansa to make further concessions.

The source, who requested anonymity due to the sensitivity of the matter, told Reuters the government might lose the 150 million euros it lent to Air Berlin because the bridging loan was secured against the proceeds of the proposed sale.

Air Berlin, which struggled to turn a profit over the last decade, filed for insolvency in August, leaving the future of thousands of workers in the balance.

Under EU rules, a decision should be made on whether to approve the deal on Dec. 7 although the Commission has the power to extend its review period by two weeks.

In complex cases, the Commission can take up to 90 working days to reach a decision. If such an extension is made, Lufthansa would likely halt its financial support to Niki, forcing it to cease operations, the source familiar with the company's thinking said.

"Niki is on a knife-edge," the person said.

It remained unclear whether the entire Air Berlin deal would collapse if Lufthansa does not win control of Niki - or whether the German airline would pull out and then seek separate EU approval just to buy LG Walter.

Scenting a fresh opportunity, earlier bidders for Niki have restated their interest - including British Airways which, according to Bild am Sonntag, has asked to see its accounts.

Air Berlin and British Airways parent IAG (>> International Consolidated Airlines Group) both declined to comment.

Niki Lauda said on Wednesday he would, together with travel company Thomas Cook (>> Thomas Cook Group), like to buy back the airline he founded. "My offer, together with Thomas Cook, still stands," he told the Handelsblatt financial daily.

(Writing by Douglas Busvine; Editing by Elaine Hardcastle)

By Klaus Lauer

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AIR BERLIN PLC
01/18 Scandinavian airline SAS sees Airbus jet order this spring
01/17 In battle for Austrian airline Niki, Lauda woos employees
01/17 AIR BERLIN : Passenger traffic at Munich Airport rises to 44.6m
01/16 AIR BERLIN : Passenger traffic at Munich Airport rises to 44.6m
01/16 Niki administrator yet to decide whether to withdraw appeal
01/16 German, Austrian administrators cooperate to secure deal for Niki
01/16 BA owner IAG hopeful that it can complete Niki acquisition promptly
01/15 Swiss airline Belair taken over by investment company SBC
01/15 Ryanair wants to buy parts of Austrian airline Niki
01/15 AIR BERLIN : Passenger traffic at Munich Airport rises to new all-time high of 4..
More news
News from SeekingAlpha
2017 WALL STREET BREAKFAST : Elections And Currencies
2017 Lufthansa eyes Air Berlin assets
2017 Kamakura Reports Stable Corporate Credit Quality In August
2017 Air Berlin files for insolvency
2017 Still Upside For Lufthansa?
Financials (€)
Sales 2017 3 114 M
EBIT 2017 -179 M
Net income 2017 -
Debt 2017 1 498 M
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018
EV / Sales 2017 0,48x
EV / Sales 2018 0,46x
Capitalization 4,91 M
Chart AIR BERLIN PLC
Duration : Period :
Air Berlin Plc Technical Analysis Chart | AB1 | GB00B128C026 | 4-Traders
Technical analysis trends AIR BERLIN PLC
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 1
Average target price 0,01 €
Spread / Average Target -76%
EPS Revisions
Managers
NameTitle
Thomas Winkelmann Chief Executive Officer & Executive Director
Gerd Becht Chairman
Oliver Iffert Chief Operating Officer
Courtelis Dimitri Chief Financial Officer
Joachim Edmund Hunold Co-Vice Chairman
Sector and Competitors
1st jan.Capitalization (M$)
AIR BERLIN PLC-2.63%6
DELTA AIR LINES6.64%42 386
RYANAIR HOLDINGS PLC11.85%23 965
AIR CHINA LTD.-10.39%23 054
UNITED CONTINENTAL HOLDINGS INC13.20%22 604
INTERNATIONAL CONSOLIDATED AIRLINES GROUP-0.49%18 464