Lufthansa and EasyJet nose ahead in race for Air Berlin

BERLIN: Insolvent Air Berlin will decide on the future of its 140 aircraft and 8,000 employees, with Lufthansa, EasyJet and Condor favourites to divide the spoils of the German airline.

Its supervisory board is set to approve at 1300 GMT the shortlist of bidders for Air Berlin’s assets agreed among the company’s creditors Thursday, with technical details around winding up the carrier to be thrashed out in the coming weeks.

At stake are the carrier’s 140 leased aircraft – including those wholly owned by Austrian subsidiary Niki – coveted landing and takeoff slots at German airports, and some prime Berlin real estate.

Air Berlin triggered bankruptcy proceedings in mid-August after losing a cash lifeline from its biggest shareholder Etihad Airways, giving potential buyers a month to make their offers.

Media reports suggest that large parts of Germany’s secondlargest airline will be gobbled up by the country’s flagship carrier Lufthansa.

In the race to strip down Air Berlin, Lufthansa reportedly beat out IAG –owner of Iberia and British Airways – and three bids of between 500 million and 600 million euros (US$600 million and US$715 million) apiece from private investors.

Irish low-cost airline Ryanair stayed out of the bidding as its outspoken chief Michael O’Leary denounced a German “stitch-up” designed to favour Lufthansa.

The German government, which extended a bridging loan to Air Berlin to keep its aircraft aloft, ruled out any one competitor taking over the carrier whole for competition reasons. — AFP