Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Germany
  4. Xetra
  5. Air Berlin Plc
  6. News
  7. Summary
    AB1   GB00B128C026

AIR BERLIN PLC

(AB1)
SummaryNewsCompany 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Etihad Airways sells first airline stake since launching review

07/20/2017 | 06:07am EST
FILE PHOTO: An Etihad Airways Boeing 777-3FX takes off at the Charles de Gaulle airport in Roissy

ABU DHABI/DUBAI (Reuters) - Etihad Airways has sold its minority stake in European regional carrier Darwin Airline, the first divestment since launching a strategic review last year and just weeks after chief executive James Hogan left the Abu Dhabi carrier.

Etihad, which held a 33.33 percent stake in Darwin Airline, and other investors have sold their shares to a new Swiss subsidiary of Slovenia's Adria Airways, according to a Darwin Airline statement on Thursday.

An Adria Airways spokeswoman told Reuters it had bought 99.1 percent of Darwin Airline and would purchase the remaining shares "shortly".

Darwin Airline was one of eight carriers Etihad bought since 2011 and the second one sold after British Airways-owner International Airlines Group (IAG) (>> International Consolidated Airlines Group) took over Aer Lingus [AERLI.UL] in 2015.

Darwin Airline will be rebranded as Adria Airways Switzerland. It has operated as Etihad Regional since 2014 when Etihad Airways bought its stake.

The value of the transaction was not disclosed. The shares were sold to a new Swiss subsidiary of Adria Airways, the statement said.

Adria Airways Chief Financial Officer Heinrich Ollendiek will replace Maurizio Merlo as Darwin Airline chief executive officer.

Etihad' minority stakes, which include holdings in Italy's Alitalia and Germany's Air Berlin (>> Air Berlin Plc), were already in doubt after the Gulf carrier began a strategy review last year.

Etihad sold its stake in Darwin Airline as part of the continuing review, Etihad's chief strategy and planning officer Kevin Knight said.

Etihad appointed Irishman Ray Gammell as interim chief executive in May, replacing Hogan who left Etihad on July 1.

Etihad has spent billions of dollars buying minority stakes from Europe to Australia in its bid to catch up with regional rivals Emirates and Qatar Airways.

Hogan had championed the strategy, arguing it provided scale for Etihad, the youngest of the three major Middle East carriers.

Etihad's strategy has allowed it to cut costs by pooling items such as aircraft procurement, while offering a larger network. It says it brings together 600 destinations and over 700 aircraft.

The future of those investments is unclear amid the review and after staff at Alitalia overwhelmingly rejected its latest restructuring plans in April.

Air Berlin saw its losses widen to a record 782 million euros in 2016.

Other investments such as Air Serbia and Air Seychelles have been more successful. In those carriers, Etihad was given hands-on management control and benefited from close diplomatic ties.

(Additional reporting by Marja Novak in Ljubljana; editing by Jason Neely and Edmund Blair)

By Stanley Carvalho and Alexander Cornwell


© Reuters 2017
Stocks mentioned in the article
ChangeLast1st jan.
AIR BERLIN PLC 0.00%End-of-day quote.-18.42%
INTERNATIONAL CONSOLIDATED AIRLINES GROUP, S.A. -14.58% 131.82 Delayed Quote.-17.77%
JASON CO., LTD. -0.41% 482 End-of-day quote.-27.84%
LETS HOLDINGS GROUP CO., LTD. -2.37% 6.59 End-of-day quote.-15.30%
LOOK HOLDINGS INCORPORATED -1.08% 1372 End-of-day quote.43.36%
NEXT PLC -3.23% 7848 Delayed Quote.10.75%
SWISS RE LTD -4.20% 86.26 Delayed Quote.3.50%
All news about AIR BERLIN PLC
10/20Lufthansa, easyJet win EU court backing to buy Air Berlin assets
RE
01/15AIR BERLIN : Seychelles May Face Lawsuit Over $70 Million Bond Money, Report Says
AQ
2020AIR BERLIN : Trouble In The Middle East, Or Europe, Or England & Wales?
AQ
2020EXCLUSIVE : Etihad bondholders put airline on notice with debt revamp - sources
RE
2018Etihad in rescue talks with bankers for India's Jet Airways - sources
RE
2018Airlines agree to provide more aircraft in Germany - transport ministry
RE
2018Lufthansa's Eurowings says Air Berlin plane transfer almost done
RE
2018Air Berlin Announces Earnings Results for the Full Year of Fiscal 2017
CI
2018No antitrust probe for Lufthansa over fares after Air Berlin collapse
RE
2018Air Berlin creditors plan to sue Etihad for damages
RE
More news
Analyst Recommendations on AIR BERLIN PLC
More recommendations
Managers and Directors
Michelle Johnson Secretary & General Counsel
Sector and Competitors
1st jan.Capi. (M$)
AIR BERLIN PLC-18.42%2
DELTA AIR LINES, INC.-9.53%23 203
RYANAIR HOLDINGS PLC-13.66%17 928
AIR CHINA LIMITED-12.95%15 949
CHINA SOUTHERN AIRLINES COMPANY LIMITED0.00%15 554
UNITED AIRLINES HOLDINGS, INC.-2.29%13 684