Lufthansa to purchase large parts of embattled Air Berlin

12 Oct 2017
Lufthansa to purchase large parts of embattled Air Berlin

German airline Lufthansa is to buy large parts of insolvent rival Air Berlin, Lufthansa chief executive Carsten Spohr said Thursday.

Lufthansa is to sign a contract later Thursday with Air Berlin to acquire sections of the nation's second-biggest carrier, which filed for insolvency in August after its main shareholder, Abu Dhabi-based Etihad Airways, halted financial aid.

"This is indeed a big day, which we're going to set in stone with a signature in a few hours," he said.

Investors believe that Lufthansa will profit from Air Berlin's breakup, which had driven up shares in the Cologne-based airline by 2.4 per cent, to 25.60 euros (30.40 dollars), on the Frankfurt Stock Market even before Spohr's announcement.