ETIHAD AIRWAYS is taking a stake of almost 30 per cent in Germany’s Air Berlin, becoming the first Gulf carrier to challenge European legacy airlines by putting cash on the table to gain scale.
Abu Dhabi-based Etihad will spend about €73 million to buy new shares of Air Berlin, raising its stake to 29.21 per cent from just below 3 per cent, and will lend the German carrier $255 million.
Middle East carriers such as Etihad, Qatar Airways and Dubai-based Emirates have been aggressively expanding route networks, provoking fears that Gulf-based superjumbos would draw traffic from European carriers’ hubs.
Qatar Airways recently acquired a 35 per cent stake in all-freight carrier Cargolux, but the Air Berlin move is the first time a Gulf carrier has bought an equity stake in a European passenger airline. Etihad had previously been mooted as a prospective partner for Aer Lingus.
The deal includes a codeshare agreement giving Etihad access to Air Berlin’s dense European short-haul route network, and to the German capital ahead of rival Emirates, which has lobbied for years to be allowed to fly to Berlin. – (Reuters)