TUI board approves plans for new leisure airline with Etihad
Will serve tourist destinations from airports in Germany, Austria and Switzerland
Europe’s largest tour operator TUI Group will spin off its German airline TUIfly into a separate company together with some operations from struggling Air Berlin after its supervisory board approved the move on Wednesday.
The new airline venture is part of a wide-ranging restructuring plan at Air Berlin, part-owned by Abu Dhabi-based Etihad and battling to stem losses.
TUIfly will be combined with Air Berlin’s Niki unit, which Etihad first plans to acquire, in a move that could bring financial relief for Germany’s second largest carrier after Lufthansa.
Etihad said in a statement it was still working through that process and would provide a further update in due course.
The new airline will have a fleet of around 60 aircraft, serving tourist destinations from airports in Germany, Austria and Switzerland. Based in Vienna, it will be 24.8 percent owned by TUI, 25 percent by Etihad and the remaining 50.2 percent will be controlled by an Austrian foundation.
TUI hopes spinning off its leisure airline into a new venture with Etihad will be a way to make better use of flights and crew during the quieter winter months, thus reducing costs.
Also Read
-
UAE's Air Arabia confirms options for five Airbus A320s
The country’s only publicly-listed airline also has a firm order for 44 A320s Aviation & Transport -
Nesma Airlines to launch domestic Saudi flights in November
The airline’s focus on poorly-connected regional markets gets the nod from country’s regulators Aviation & Transport -
Etihad could raise $1 bln in planned sukuk debut
The airline, whose credit is rated A by Fitch, reported total revenues of about $9 billion in 2015, according to the presentation Aviation & Transport -
Airlines have much to cheer, posting record $40bln profit in 2016
Carriers benefit from a sharp fall in the price of oil and a resilient travel market, reports IATA Aviation & Transport
