German carrier Air Berlin has abandoned its attempt to acquire holiday airline Condor, but will look instead at other potential forms of co-operation between the two.
Air Berlin’s decision follows a drawn-out assessment by the German competition authority, Bundeskartellamt, which has repeatedly extended its deadline to conclude an examination of the potential tie-up.
The carrier has informed Bundeskartellamt that it is withdrawing its application to take over Condor, citing “significantly changed” economic conditions – particularly the price of fuel – in the months since the proposed takeover was disclosed.
Air Berlin had planned to take 75.1% of the holiday airline directly from tour operator Thomas Cook next February, and the remaining 24.9% a year later. Thomas Cook, in exchange, would have received shares in Air Berlin and could have eventually owned almost 30% of the carrier.
“Both companies have agreed to continue negotiations regarding the feasibility of alternative solutions,” says the airline. “Both Air Berlin and Thomas Cook are interested in exploring other options.
“At present the parties involved intend to continue their discussions without being subjected to time pressure.”
Source: flightglobal.com's sister premium news site Air Transport Intelligence news
Source: Flight International
