IAG to purchase Niki for €20m

Published on : Monday, January 1, 2018

nikiiBritish Airways owner IAG announced that it will buy insolvent Austrian holiday airline Niki for €20m ($24m).

 

 

IAG mentioned that an additional liquidity to the company of up to €16.5m will also be provided.

 

Air Berlin previously owned Niki, which filed for insolvency in August after its biggest shareholder, Etihad Airways, withdrew financial support.

 

In mid-December the German carrier Lufthansa scrapped plans to purchase Niki.

 

 

There were deep competition concerns expressed by the European Commission about a possible Lufthansa purchase of 81 Air Berlin and Niki jets.

 

 

It mentioned it would limit choice for air travellers in Germany, Austria and Switzerland.

 

 

Due to this Niki grounded its planes, thousands of passengers were stranded and filed for insolvency protection.

 

Niki Lauda founded the airline,  the Austrian ex-F1 racing champion, but later sold it to Air Berlin in 2011.

 

Mr Lauda wanted put in a bid to buy the airline back after hearing about the grounding.

 

 

IAG will retain about 740 former Niki staff and will run the  airline as a new subsidiary of its budget carrier Vueling.

 

The assets will be inclusive of 15 planes along with slots in airports such as Vienna, Munich and Palma.

 

 

The deal has to be approved by European authorities.

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