Air Berlin and TUI Travel (07-Sep-2009) have amended the terms of the proposed transaction between Air Berlin and TUI Travel’s German aviation business and will now not implement the cross-shareholdings that were previously announced. The other commercial agreements and the strategic benefits of the transfer of TUIfly’s scheduled flying business will remain. Following discussions with the German Federal Cartel Office, TUI Travel will now either acquire a 9.9% stake in Air Berlin for a cash consideration of EUR33.5 million, which it will sell over a period of time, or alternatively will pay Air Berlin EUR15 million.
Air Berlin will no longer acquire a stake in TUIfly and TUI Travel will also no longer receive the right to nominate a non-executive director to the Board of Air Berlin. The transfer of the TUIfly scheduled flying operations shall be effected by the end of Oct-2009. Air Berlin will initially operate 13 of TUIfly’s aircraft in the Winter 2009/10 season, increasing to 14 in Summer 2010. [more]