Lufthansa Takeover Leaves Air Berlin Workers Fighting For Jobs

BERLIN (Alliance News) - German airline Lufthansa's takeover of the bulk of its insolvent rival ...

Alliance News 13 October, 2017 | 12:07PM
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BERLIN (Alliance News) - German airline Lufthansa's takeover of the bulk of its insolvent rival Air Berlin has left thousands of the ailing group's employees facing an uncertain future with union leaders warning on Friday of legal action over the deal between the two companies.

Lufthansa agreed on Thursday to pay EUR210 million for 81 of Air Berlin's total of 140 aircraft and to hire 3,000 of its more than 8,000 employees.

However, the deal will leave thousands of Air Berlin employees trying to find new jobs, two months after the airline filed for insolvency following the move by its main shareholder, Abu Dhabi-based Etihad Airways, to end financial aid for the embattled group.

Air Berlin said that it was hopeful that 80% of its employees will be able to find new jobs.

But a spokesman for the Verdi union said: "There will certainly be legal action and we will support the employees."

Lufthansa's low-cost subsidiary Eurowings plans to present its current vacancies at a job fair to be held at Air Berlin's headquarters in the German capital on Friday.

The 210 million euros that Lufthansa is paying Air Berlin forms part of a EUR1.5 billion investment by Germany's biggest airline in the stricken carrier.

Europe's monopoly authorities also have to consider the Lufthansa-Air Berlin deal, which is expected to take several months to complete.

British budget carrier easyjet PLC is still negotiating with Air Berlin to take over the remainder of its aircraft.

Air Berlin last year ran up a loss of about EUR782 million and has debts totalling nearly EUR1.2 billion.

Copyright dpa

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Security Name Price Change (%) Morningstar
easyJet PLC 1,630.00 GBX 0.65 -
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