Lufthansa CEO says to sign Air Berlin deal today
Reuters - Thu, Oct 12th 2017 7:41 AM
Lufthansa CEO says to sign Air Berlin deal today
“We will see a milestone in the history of Lufthansa and Air Berlin today,” Lufthansa Chief Executive Carsten Spohr said.
BERLIN: Lufthansa will sign a deal on Thursday to buy parts of insolvent German carrier Air Berlin, Lufthansa Chief Executive Carsten Spohr said.
“We will see a milestone in the history of Lufthansa and Air Berlin today,” he said.
Air Berlin, which has struggled to turn a profit over the last decade, filed for insolvency on August 15, and a government loan has kept its planes in the air while it negotiates with potential buyers over parts of the business.
It said late last month that negotiations with Lufthansa and Britain’s easyJet would continue until October 12.
A person familiar with the matter had told Reuters on Wednesday that Lufthansa, Germany’s largest airline, was set to buy Air Berlin’s Niki leisure unit, its LG Walter regional airline and some additional short-haul aircraft.
Spohr said on Thursday he expected the imminent deal with Air Berlin to receive European Union approval by the end of the year, allowing operations to stabilize within about six to nine months.
Shares in Lufthansa rose 2.9 percent to 25.26 euros at the top of Germany’s blue-chip DAX index in early trade after CEO Spohr’s comments and upbeat notes from brokerages.
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