Higher stake in Austrian carrier Niki
Air Berlin is strengthening its position in Central Europe by taking a higher stake in Austrian carrier Niki, paving the way for a full takeover in a few years’ time.
The German airline is increasing its stake from 24% to 49.9% at the cost of €21 million and has also gained an option for a full takeover. At the same time, it is making a loan of €40.5 million which is secured with Niki Lauda’s 50.1% majority stake and which can be paid back over the next three years either in cash or via the transfer of the remaining 50.1% holding to Air Berlin.
Air Berlin CEO Joachim Hunold justified the financial commitment with Niki’s profitability and noted that the Austrian airline will be fully consolidated in its results in future, although it will remain a legally independent company with its own management and own brand. "Following years of successful cooperation and partnership with Niki, the increase of Air Berlin's participation is a logical development. Niki's network complements Air Berlin's network very well. For Air Berlin, the Vienna hub opens up an additional access to the fast-growing markets of Eastern Europe."
Niki Lauda stressed that he remained the owner and chief of the Austrian carrier for at least the next three years. "It is important to me that we can provide Niki with a broad base for future growth. The intensified cooperation with Air Berlin will make us more profitable, more efficient and more attractive to the passengers," he stated.
The move will increase pressure on Lufthansa and its subsidiary Austrian Airlines in Austria and Eastern Europe. Through closer commercial cooperation with Niki, Air Berlin will be able to challenge the Lufthansa group on routes to and from Vienna, offer connecting flights to and from Eastern Europe while also targeting the low-cost market following the collapse of SkyEurope last year.
According to provisional figures, Niki increased revenues by 17% to €269.2 million last year and improved its operating profit by 71% to €23.1 million. For the current business year, the airline plans new flights to Sofia, Bucharest, Copenhagen and Nice.
Niki's integration into Air Berlin increases the group’s fleet size by eleven aircraft. Based on the provisional figures for the 2009 business year, the number of passengers transported by the Air Berlin Group will increase by 2.6 million at a fleet capacity utilisation rate of 77%.
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