IAG To Purchase Niki For $24m

Published: Wilson Clark

On: Jan 2018

Owner of British Airways, IAG finalk confirmed to buy the insolvent Austrian holiday airline Niki. The deal will worth $24. IAG also stated that once it buys the company it will spend around €16.5m to add to its liquidity value.

The previous owner of Niki, Air Berlin,j filed for insolvency in the month of August when its largest shareholder, Etihad Airways, took out the financial support.

German carrier Lufthansa was also interested in purchasing Niki but cancled its plan in mid-December as European Commision expressed cempetition concern over it. Had Luftanza been buying Niki, European travellers will have limited Aitline operators to chose from and might lead to Dominance of Luftanza in the market with 81 Air Beline and Niki planes.

Niki was founded by Niki Lauda, the Austrian ex-F1 racing champion, but he sold it to Air Berlin in 2011.

IAG has stated that it will operate the airline as a new subsidiary keeping around 740 former Niki staff.

The assets of Niki has 15 planes, as well as permission to operate in airports such as Vienna, Munich and Palma. The deal is awaiting an approval by European authorities.