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Lufthansa To Buy Assets Of Air Berlin

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Assets of bankrupt Air Berlin will be bought by Lufthansa AG, reports said. The German airline has filed for insolvency on August 15, however negotiations for sale of its business have been going on with the support of the government.

The Lufthansa's move comes at a time when Air Berlin's discussions with EasyJet ended on October 12. EasyJet was said to be discussing to buy up to 30 planes.

Reuters reported that Lufthansa now plans to buy Air Berlin's Niki leisure unit, LG Walter regional airline and other aircraft. The reports said no contract have been signed, however agreement is reached.

Abu Dhabi's Etihad had been a minority shareholder of Germany's second largest airline and a major backbone in its financing. However, they refused to continue the financial support to the airline as the business deteriorated. Etihad had invested more than $2.2 billion in Air Berlin since 2011. The Abu Dhabi airline had to bear loss of around $808 million from its investment in Air Berlin, Alitalia and other equity partners airlines.

Air Berlin have been struggling from competitions from no frills airline such as Ryanair and EasyJet and recorded loss of more than $3.2 billion in last six years.

by RTT Staff Writer

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