IAG Moves In on Niki Acquisition
Wednesday, 10 January 2018 18:45
PDF Print E-mail

Despite a legal challenge that arose this week, International Airlines Group is poised to acquire Airberlin's Austria-based leisure airline Niki. IAG in late December announced it was acquiring Niki's assets for 20 million euros and would create a subsidiary for low-cost carrier Vueling. IAG plans to incorporate the subsidiary as a separately run Austrian company. The deal nets IAG as many as 15 A320 aircraft and Niki's slot portfolio, which includes Vienna, Dusseldorf, Munich, Zurich and Palma, Mallorca.

The acquisition faced a legal challenge this week from Fairplane, an airline passenger rights group, which said the insolvency hearings needed to be handled by a court in Austria rather than in Germany, where Niki filed for insolvency in December, according to Reuters. Niki plans to file anew in Austria by the end of this week.

Lufthansa originally intended to acquire Niki as part of its takeover of Airberlin's assets but dropped its plans in December amid competition concerns.