German carrier Air Berlin is in discussions with tour operator TUI Travel over a possible strategic co-operation involving carrier TUIfly.
Under the proposed co-operation a division of TUI Travel would take a minority interest in Air Berlin. This would be no greater than 20%.
The interest would be acquired through subscription to new shares.
In return Air Berlin would indirectly acquire a participation of the "same percentage" in TUIfly, the airline formed by the consolidation of Hapag-Lloyd and Hapag-Lloyd Express.
Air Berlin would also take over TUIfly's city routes and enter long-term service deals with TUIfly to use aircraft capacity. The charter routes would remain with TUIfly.
TUI Travel has confirmed the talks, but has not given many details.
It says the discussions "may involve an equity participation in an enlarged Air Berlin" but adds that there is "no certainty" that the talks will result in a transaction.
Source: Air Transport Intelligence news
