UK low-cost airline easyJet has strengthened significantly its business in Germany by agreeing to pay €40 million for part of Air Berlin’s operations at Berlin Tegel airport.
Management at easyJet said on Friday that it would take on leases for 25 A320 aircraft, buy Air Berlin’s slots, and employ many Air Berlin staff including offers to 1,000 Air Berlin pilots.
The purchase price of €40 million does not include ongoing leasing costs but the deal, from Air Berlin’s standpoint, meant the failed German carrier has been carved up and the parts sold off.
easyJet commented that the deal will enable the company to operate a short-haul business from Tegel and Berlin Schoenefeld airports, “connecting passengers to and from destinations across Germany and the rest of Europe.”
Lufthansa, a buyer for other of Air Berlin’s assets including 81 aircraft, will be spending €1.5 billion, including €210 million for the aircraft and €1 billion on ‘fleet investments.’
Competition authorities are happy as the easyJet deal means Lufthansa has a sizeable competitor in the German market.
Air Berlin, which hit fatal financial turbulence in August, flew its last flight on Saturday 28th October after a 38-year run.
German passengers face high prices due to the gap left by Air Berlin as Lufthansa will be concentrating on long haul and easyJet is not expected to supply route demand until the summer 2018 schedule comes on stream, offering a reduced service from Berlin’s airports over the winter months.
The comapny stated, "easyJet will make announcements on the new routes and services to be flown to and from Tegel in due course. easyJet will operate a reduced timetable at Tegel during the winter season but plans to operate a full schedule from the summer season 2018. easyJet looks forward to building on the strong, customer focussed platform it already has in Berlin to fly more passengers, employ more people and support more economic growth in both Berlin and Brandenburg."
