18 March 2009

Air Berlin and TUI in talks over cross investment

Air Berlin and TUI are looking to take cross shareholdings in each other's businesses.

If a deal goes ahead, TUI would take up to 20% of Air Berlin via a subscription to new shares, while the low-cost airline would take the same shareholding in TUI.

According to Air Berlin, it would would also take over TUIflyââ¬â¢s city sector routes and a number of its aircraft, leaving TUI to concentrate on charter operations.

TUI confirmed it has held talks with Air Berlin but said there was no assurance the negotiations would lead to a deal as it would have to be approved by both partiesââ¬â¢ Boards and regulatory authorities.

Last year, Air Berlin planned a takeover of Condor, which was at that time majority owned by Thomas Cook Group.

TUI Travel has previously held talks with Lufthansa about merging its TUIfly operations with Germanwings.

Shares in Air Berlin rose 4.07% to â'š~¬3.44 on Frankfurt's SDax index.

By Bev Fearis

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