Lufthansa scraps purchase of Air Berlin's Niki
Lufthansa has abandoned plans to buy Air Berlin subsidiary Niki after being told by the European Commission that it would not allow the deal, meaning Niki could join the list of Europe's collapsed airlines this year.
Lufthansa has abandoned plans to buy Air Berlin subsidiary Niki after being told by the European Commission that it would not allow the deal, meaning Niki could join the list of Europe's collapsed airlines this year.
Tough competition and falling ticket prices have led to the demise of Monarch and Air Berlin while Alitalia has filed for insolvency protection.
Lufthansa's planned takeover of Air Berlin businesses Niki and LGW had raised concerns among rivals that Lufthansa would become too dominant in Germany.
The withdrawal leaves Air Berlin's administrators scrambling to find a new buyer for Austria-based Niki, which had not filed for insolvency itself and was still flying with the help of funding from Lufthansa.
The administrators said on Tuesday British Airways' parent was no longer interested and talks with Thomas Cook had not yet resulted in a viable deal. Thomas Cook declined to comment on Wednesday.
The German government, which stands to lose out on a loan given to Air Berlin, said it expected Niki, founded by former Formula 1 driver Niki Lauda, to file for insolvency protection and be grounded.
Lufthansa, and Air Berlin's administrators had also previously warned that would happen if the deal was not approved.
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