EasyJet buys part of insolvent Air Berlin for €40m

October 31, 2017: The British LCC, EasyJet has confirmed that it has agreed to buy a portion of the Germany’s insolvent Air Berlin in a €40m ($46.4 m) deal.  This move will secure 1,000 jobs.

EasyJet will enter into leases for up to 25 numbers of A320 aircraft and take over company’s assets at Berlin Tegel Airport including landing slots.

Air Berlin, Germany's second-ranked airline employing some 8,000 people, triggered bankruptcy proceedings in August after its biggest shareholder Etihad Airways pulled the plug on a cash lifeline following years of losses.

EasyJet said the €40-million-price it was paying excludes "potential startup and transitional operating costs", adding: "The acquisition is subject to regulatory approvals and is expected to close in December 2017.”

Air Berlin has already agreed to sell its Austrian airline Niki to Lufthansa as well as its regional carrier LGW.

A loan from the German government has enabled the airline to continue operating despite the insolvency.

EasyJet said that it would operate a reduced timetable at Tegel airport during the winter season but is planning for a full schedule for summer 2018.