Albania hosts MWL chief for Eid sermon at largest mosque in the Balkans    Saudi Arabia launches pavilion at Bologna International Book Fair 2025    Rare Kaaba interior coverings showcased at Islamic Arts Biennale in Jeddah    Haramain High-Speed Railway transports over 1.2 million passengers during Ramadan    Marine Le Pen sentenced to prison, barred from office over EU funds embezzlement    UK returns over 24,000 migrants as Starmer scraps Rwanda deportation plan    Missing US soldiers' armored vehicle recovered from Lithuanian swamp    Myanmar declares seven days of national mourning after devastating earthquake    Saudi Transport Authority says passengers can ride for free if taxi meters are off    Ministry of Education forms 425 community partnerships with SR653 million impact    Defense, interior, and national guard ministers extend Eid greetings, praise efforts of military and security personnel    Mexico bans junk food in schools to fight childhood obesity epidemic    Elon Musk's xAI acquires X in all-stock deal    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Saudi creatives shine at Jeddah's Fawanees Nights with art, fashion, and storytelling    100 Thieves claim Marvel Rivals Invitational NA crown as 2025 scene heats up    T1 CEO confirms Gumayusi's return for LCK Spring after lineup shakeup    Bollywood actress vindicated over boyfriend's death after media hounding    Saudi Arabia hold Japan to goalless draw in Saitama to stay in World Cup hunt    NewJeans announces hiatus after setback in court battle    George Foreman, heavyweight champion and cultural icon, dies at 76    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Etihad becomes biggest shareholder in Air Berlin
Published in The Saudi Gazette on 20 - 12 - 2011

At a cost of 53 million euros, Etihad takes 29 percent stake in Air Berlin, with the new shares to be issued at 2.31 euros.
BERLIN - Abu Dhabi-based Etihad Airways becomes the biggest shareholder in troubled Air Berlin PLC, taking a stake of nearly 30 percent, Germany's second-biggest airline and the fast-growing Gulf carrier announced Monday.
Etihad currently holds 2.99 percent of Air Berlin, and said the stake would grow to 29.21 percent via an issue of new shares.
Etihad is to get two seats on Air Berlin's board of directors, and also is pledging to provide up to $255 million over the next five years to support fleet development and future network growth.
The announcement comes as Air Berlin, Germany's No. 2 airline after Deutsche Lufthansa AG, pushes through an efficiency drive following losses that it has blamed on high fuel prices, a new German aviation tax and sagging demand for travel to northern Africa.
Air Berlin said earlier this year that it plans to chop some routes and cut 18 aircraft from its fleet of 170 by next summer. Founder Joachim Hunold stepped down as CEO and handed over to Hartmut Mehdorn, a former chief executive of Germany's national railway.
“The strategic partnership with Etihad Airways opens up enormous opportunities for the future of our company,” Mehdorn said Monday. “This applies especially to future market development and the realization of synergies.”
The two airlines plan “extensive” code-sharing agreements and to connect their frequent flyer programs.
“This new partnership expands our network reach, gives us access to 33 million new passengers, and provides us with a real opportunity for global growth,” Etihad CEO James Hogan said.
“Through Air Berlin, we gain immediate access to a broad and complementary European market,” he said, adding that the airlines estimate they can each increase revenues by between €35 million and €40 million ($46 million and $52 million) in the first year of the deal alone. Air Berlin's main hubs are in Berlin - where a new airport is to open next year - Duesseldorf, Palma de Mallorca and Vienna.
As part of the deal with Etihad, the German airline will start operating four flights a week between the German capital and Abu Dhabi in January. It also plans to shift its Middle East operations to Abu Dhabi from the nearby Emirati city of Dubai.
Air Berlin shares soared on the news, rising 8.2 percent to €2.50 in Frankfurt trading.
Etihad is bankrolled by the government of Abu Dhabi. It has not yet posted a profit, but expects to break even for the first time this year. It began operations in 2003.
Etihad is younger and far smaller than Emirates, the Middle East's biggest carrier, which is based in Dubai.
The two carriers and another state-backed Gulf carrier, Qatar Airways, are increasingly challenging established European and Asian carriers by routing lucrative long-haul flights through the Gulf.
Etihad last week placed an order with Boeing Co. for 10 more of the manufacturer's new 787-9 planes, making it the largest airline customer for that version of the jet, with 41 orders on the books.


Clic here to read the story from its source.