Home » Money

Germany's Lufthansa drops bid for Air Berlin's Niki unit

14 December, 2017, 14:55 | Author: Melinda Barton
  • Niki Lauda Fly Niki Airlines

This is especially hard for the employees.

The commissioner in charge of competition policy, Margrethe Vestager, said Tuesday that Easyjet's plans will not reduce competition.

Vestager previously said that, given its dominant position in domestic air travel, Lufthansa might have to give up certain routes in exchange for approval.

Air Berlin said in a statement Tuesday that prospective buyers IAG had withdrawn their interest in Niki, while there was also no workable offer from Thomas Cook, leaving Lufthansa as the group's only option for sale.

A halt to Niki's services would add to Christmas-season air-travel disruptions across Europe, after United Kingdom leisure carrier Monarch Airlines folded in October.

EasyJet plans to take over the leases of up to 25 Air Berlin A320s and take over its slots in Berlin, where it will compete with Lufthansa. Spokesman Martin Leutke said it isn't yet clear how a planned investment budget of about 1 billion euros will change, but it won't be the same, and Lufthansa is planning to move forward without the Niki aircraft.


In the wake of the failed Niki pursuit, Lufthansa is offering to relinquish "numerous slots" to gain clearance for the purchase of Air Berlin turboprop operator LGW, officially known as Luftfahrtgesellschaft Walter.

Furthermore, Niki would lose their highly-prized starting and landing rights at German airports.

At least Air Berlin's insolvency administration is unlikely to face resistance from the European Union (EU) should they succeed in selling Niki to Thomas Cook at the last minute.

"It was clear from the start that Lufthansa and Air Berlin overlap on a very significant number of routes, with clear risks to Austrian, Germans and Swiss consumers and to effective competition", the Commission said. It will instead focus on submitting revised concessions to the Commission with a view to completing its acquisition of another Air Berlin unit, LGW.

While Lufthansa may thus have been able to cut its related losses on Wednesday, the sudden lack of a buyer for Niki remains highly inconvenient for German policymakers who granted Air Berlin an emergency credit facility of 150 million euros.

Recommended:



Popular

IOS 11.2.1 Released With HomeKit Vulnerability Fix
Aside from the Apple Pay Cash reinstall issue, the iOS 11.2 has also caused an error in the iPhone X's Face ID system. Apple has started rolling out the iOS 11.2.1 update for iPhone and iPad a week after iOS 11.2 was made available.

South Korean President Moon in China on visit to fix ties
Moon kicked off his trip to China yesterday and spoke of the need to get bilateral economic exchanges back on track. South Korean photographers protested after security personnel stopped them from following Moon's delegation.

Twitter announces new Threads feature for publishing multiple tweets
Now when you open one of your own tweets, a composition window appears below it with the prompt, "Add another tweet". You write the first tweet, then a response to that tweet, then another response, and so on until you're done.

Carson Wentz injury: Philadelphia Eagles quarterback tore ACL, out for the season
Wentz was injured when he took a big hit on a third-quarter touchdown run that was called back because of a penalty. The Eagles have overcome several key injuries and now have to move forward without their most indispensable player.

Austria gas plant blast kills one
A spokesman for the fire brigade said a number of cars in the auto park had melted due to the heat and six buildings were on fire. Slovakia's main gas transit route to Austria was suspended after the explosion, Slovak pipeline operator Eustream said.

Do NASA discovered extra-terrestrial life? To be unveiled on Thursday
Shallue is also a senior research engineer at Google, Google Brain , which is Google's machine intelligence research team. In 2014, Kepler began a new exoplanet-hunting mission, K2, which has confirmed the existence of 178 exoplanets to date.

3 of Donald Trump's sexual misconduct accusers call on Congress to investigate
Holvey, a former contestent on Miss USA, said that Trump leered at the contestents and entered the womens' dressing room. Like Leeds's story of meeting Trump and his first wife, Ivana , at a Humane Society fundraiser in NY .

Ole Miss QB Shea Patterson, former IMG Academy star, transfers to MI
He threw for 2,259 yards, 17 touchdowns and nine interceptions before suffering a season-ending knee injury in a loss to LSU. Head coach Hugh Freeze made a decision to pull Patterson's redshirt and start him for the final three games of the season.

Steven Gerrard: I wouldn't want to play against Liverpool's front three
The result lifted Sam Allardyce's men up to 10th, six points clear of the bottom three. There will be a feeling that Liverpool have no one to blame but themselves.

Tom Savage spasms after hit, replaced by TJ Yates
Savage returned to the field just minutes later despite the hit, but was later removed from the game due to a concussion . The team suffered another blow on November 19 when rookie running back D'Onta Foreman ruptured his left Achilles tendon.