EasyJet clinches parts of Air Berlin for German expansion

EasyJet has strengthened its position in Germany by agreeing to buy part of Air Berlin’s operations at Berlin Tegel airport, ending uncertainty over the fate of the failed airline’s
remaining assets.

EasyJet said late Friday the item might enter into leases for up to 25 A320 aircraft, acquire take-off in addition to landing slots, in addition to offer jobs to staff, producing the announcement shortly after Air Berlin’s final flight landed at Tegel.

The purchase cost is actually 40 million euros ($46.43 million), however This particular does not include any transition costs in addition to because Air Berlin planes are leased, those will have to be funded separately.

Air Berlin said Saturday which the deal meant the item had successfully closed all negotiations for its carve-up. the item added sale talks with EasyJet had been held since the early summer. The British carrier declined to comment on the timeline.

The deal will make easyJet, which currently operates only out of Berlin Schoenefeld airport, the leading carrier within the German capital, the item said.

“This particular will enable easyJet to operate the leading short haul network at Tegel connecting passengers to in addition to coming from destinations across Germany in addition to the rest of Europe,” easyJet said in a statement.

In comparison, Lufthansa, which is actually taking on Air Berlin operations with about 81 aircraft, expects to invest around 1.5 billion euros in total. which includes a purchase cost of 210 million euros in addition to fleet investments of around 1 billion.

The deal with easyJet, subject to regulatory approval, could help to ease some of the worries with the Lufthansa deal, because the item gives Lufthansa a competitor within the domestic German market.

Air Berlin had been the main rival for inner-Germany routes, while others like easyJet in addition to Ryanair had focused on routes to in addition to coming from Germany.

Air Berlin was founded nearly 40 years ago in addition to carried around 30 million passengers a year. the item was beloved by Germans for its flights to holiday island Mallorca in addition to also for the chocolate hearts the item gives out after each flight, however filed for administration in August after years of losses.

Thomas Cook’s German airline Condor, which had also been interested in some of Air Berlin, declined to comment on Saturday.

The grounding of Air Berlin coming from Saturday means passengers in Germany could struggle to find plane tickets This particular winter. Lufthansa is actually using bigger planes meant for intercontinental routes on some short trips however says the item cannot make up the gap on its own.

EasyJet said the item might run a reduced timetable at Tegel during the winter, however might aim for a complete summer schedule in 2018.

The airline will look to recruit around 1,000 Air Berlin pilots in addition to cabin crew, on local contracts in addition to has also written to crew at its Hamburg base, which the item is actually closing, to say there is actually a place for them in Tegel if they want.