Air Berlin Plane

Air Berlin to Merge Leisure Travel Business with Rival TUI

By Stephen Fuchs on Email @StephenWFuchs

Air Berlin, Germany’s second largest airline, announced on Wednesday that it will be entering into a deal with German tourism giant TUI, that would see the two companies merge their leisure travel business. The deal is part of an effort at Air Berlin to cut costs after operating with a net loss in seven of the last eight years.

Etihad Aviation Group, the airline’s largest shareholder, confirmed that the deal was in the works and that by working with TUI, the two airlines would “create a strong European leisure airline group, focused on point-to-point flying to connect key tourist markets,” and would cater to a “broad network of destinations from Germany, Austria and Switzerland”.

The financial value has yet to be disclosed, but Air Berlin stated that once a final deal is agreed upon, it “will be subject to successful negotiations and to all necessary corporate and regulatory approvals”.

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Sources: Reuters, Wall Street Journal

Photo: Anna Zvereva [Flickr]

Stephen Fuchs
Stephen founded German Pulse and LGBT Germany out of a passion to introduce Americans to a Germany that goes beyond beer and polka (although with enough beer he has been known to polka it up a bit). He's a coffee addict, lover of wine and good times, a hit in the kitchen and editor of TV commercials. You can follow him on Twitter (@StephenWFuchs) to find out a lot more.
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