IAG to Buy Austria’s Niki Air for $24 Million

Niki Air

IAG plans to buy Niki Air, which had declared bankruptcy. Niki Air

Skift Take: All the pieces of bankrupt Air Berlin are now falling into place. The result may be diminished competition as the big airlines gather up the Air Berlin remnants.

— Dennis Schaal

International Airlines Group, the parent of British Airways and Iberia, says it’s acquiring much of bankrupt Air Berlin’s Niki division.

German news agency dpa reported that IAG said Friday it will pay 20 million euros ($24 million) for Austria-based Niki and inject another 16.5 million euros into the company. It will found a new Austria-based subsidiary of budget airline Vueling, taking on up to 15 Airbus A320 jets.

Germany’s Lufthansa withdrew a bid for Niki earlier this month as it sought European Union approval to acquire large parts of Air Berlin. That forced Niki, which continued flying after Air Berlin ended operations in October, to file for bankruptcy and ground its fleet.

Lufthansa then secured EU approval to take over some Air Berlin operations, while easyJet is acquiring another part.

This article was from The Associated Press and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Ryan Wolkov

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Author: Ryan Wolkov

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