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Air Berlin buys LTU for 140 mln eur; to buy 49 pct of Belair UPDATE Air Berlin buys LTU for 140 mln eur; to buy 49 pct of Belair UPDATE
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Airline Code [BER] View More Air Berlin News 
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| Air Berlin Profile |
Tags :Commercial Agreements, Air Berlin
The airline said it sees annual savings of 70-100 mln eur resulting from the acquisition.
The company also said it posted full-year net profit of 50.1 mln eur, compared with a loss of 115.6 mln eur in 2005, and said EBIT improved to 64.1 mln eur from a loss of 5.5 mln eur.
Meanwhile, Intro GmbH said LTU's full-year loss declined to less than 15 mln eur and is set to post a profit in 2007 with the tourism company ahead of plan in the first three months of this year.
Air Berlin will finance the takeover by issuing convertible bonds and new shares worth about 250 mln eur. The new shares may total up to 10 pct of existing share capital.
Chief executive Joachim Hunold said the acquisition will allow Air Berlin to offer long-haul flights.
The agreement is subject to the approval of the German Federal Cartel Office, Air Berlin said.
While LTU will remain a legally independent company, Air Berlin will integrate LTU's routes in the European market into its own network, it said.
Air Berlin further announced a new code sharing agreement with KarstadtQuelle AG's budget airline Condor at the beginning of the summer season 2007/2008, which will replace a similar agreement with TUI AG's TUIfly.
Intro's chief executive Rudolf Woehrl said a combination of Condor and LTU would have resulted in synergies as well, but added that "an entrepreneurial company such as Air Berlin (...) can react significantly faster and more flexibly to new opportunities than a large company".
Air Berlin's Hunold said the reason for the new cooperation is that TUI's move to combine its German airlines Hapagfly, with which Air Berlin had a cooperation, and HLX last year, has created a direct competitor.
In addition, the carrier also said it intends to acquire a 49 pct stake in Swiss company Belair Airlines AG.
Belair, which is owned by Migros Group's Hotelplan, currently operates three airplanes.
Date posted: 28-Mar-07
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