BREAKING NEWS

BREAKING NEWS

Lufthansa offering to pay 200 million euros for Air Berlin - BamS

Now Reading:

Lufthansa offering to pay 200 million euros for Air Berlin - BamS

Text size Aa Aa

FRANKFURT (Reuters) – Lufthansa <LHAG.DE> is offering to pay 200 million euros (177.18 million pounds) to buy its insolvent smaller rival Air Berlin <AB1.DE> and is prepared to pay up to 100 million euros to meet operating costs to keep the airline going in the interim, newspaper Bild am Sonntag (BamS) said on Sunday. Citing sources close to the proceedings, the paper said that there could be three months between signing a purchasing contract and implementing the transaction because the German and European competition authorities would first need to vet any deal, BamS said. On filing for insolvency last month the Berlin government promptly granted Air Berlin a 150 million-euro bridging loan to keep the airline flying for three months. On Thursday Air Berlin’s creditor committee said it would talk to Lufthansa and Britain’s easyJet <EZJ.L> as possible buyers for the carrier’s aviation business, giving three weeks for negotiations. Sources familiar with the matter said last week Lufthansa was bidding a three-digit millions sum with the offer covering Air Berlin, its leisure airline Niki and regional subsidiary Luftfahrt Gesellschaft Walter. Lufthansa itself has only said it has made an offer for parts of Air Berlin. BamS also said its sources had said next week Air Berlin would have to return planes used on its long haul routes to two companies it leases aircraft from.

(Reporting by Vera Eckert; Editing by Greg Mahlich)
euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.