British Airways is Acquiring Austrian Holiday Airline Niki For $24.01 Million - CALIPHATE MEDIA

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Tuesday, 2 January 2018

British Airways is Acquiring Austrian Holiday Airline Niki For $24.01 Million

 Caliphatemedia                                                               January 02,2018

International Consolidated Airlines Group (IAG), the owner of British Airways on Friday announced its plan to acquire Austrian insolvent holiday airline Niki which was formerly part of the Air Berlin group for 20 million euros ($24.01 million) and provide additional funds to the company of up to 16.5 million euros.The assets to be acquired include up to 15 A320 family aircraft and an attractive slot portfolio at various airports including Vienna, Dusseldorf, Munich, Palma and Zurich. It is subject to customary closing conditions such as the EC competition approval.

The acquisition process has been on for a while and this is the final chapter in the demise of Air Berlin, the No. 2 German air carrier that previously owned Niki and filed for insolvency earlier this year. 

IAG said “ Niki would become part of the low-cost carrier Vueling and would be incorporated in Austria, employing 740 of Niki’s 1,000 former employees. Assets include 15 A320 aircraft and slots at airports including Vienna, Dusseldorf, Munich, Palma and Zurich.”

“Niki was the most financially viable part of Air Berlin, and its focus on leisure travel means it’s a great fit with Vueling,” said IAG’s chief executive, Willie Walsh.

Niki filed for insolvency earlier this month after Germany’s Lufthansa airline backed out of a deal to buy its assets on competition concerns, grounding the fleet and stranding thousands of passengers.
Niki’s administrators had been racing to find a buyer for its assets before it loses its takeoff and landing slots, its most attractive asset.
“Niki is getting a financially strong partner with a long-term development concept,” said Lucas Floether, Niki’s insolvency administrator. The deal should close in February, he said. 

The airline was founded by Niki Lauda, a Formula one champion in 2003. It was fully acquired by Air Berlin at the end of 2011, according to the company’s website, but kept the name. 
Attempts were made by Niki Lauda to repurchase Niki airline, along with several others, but eventually lost out to IAG, owners of British airways.

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