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”.
