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Airberlin: airline's latest, more radical, restructuring gets help from TUIFly and Lufthansa

Airberlin's operations are to be split into three. First, there will be a core network airline with hubs in Berlin and Duesseldorf, deploying approximately half the current Air Berlin Group fleet. Second, there are plans for a new leisure airline, combining part of airberlin's fleet with TUIFly. Third, a significant part of airberlin's fleet will be wet-leased to the Lufthansa Group.

As a result of these moves the operating fleet of the core airberlin network airline will slip from second to third in Germany and risks becoming subscale. Eurowings will rise from third to second, and the expanded new TUIFly will go from fifth to fourth (overtaking Thomas Cook Group's Condor).

For several years airberlin has been unable to break the cycle of losses and successive restructuring initiatives, in spite of repeated bailouts from airberlin's 29% shareholder Etihad. A number of details are still to be clarified. These include the detailed route networks for the different operators, the network airline's strategy for feed, and the balance of charter versus scheduled flights in the new leisure airline. However, for now and with help from competitors and Etihad, airberlin looks to have ensured at least some kind of future.

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