Etihad Airways increases stake in Airberlin

20 December 2011

UAE carrier becomes biggest shareholder in German airline

UAE national airline Etihad Airways will increase its stake in German carrier Airberlin from 3 per cent to 29 per cent, making it the largest single shareholder in the company. Etihad Airways will provide five-year financing facilities of up to $255m to support fleet development and future network growth.

“This new partnership expands our network reach, gives us access to 33 million new passengers and provides us with a real opportunity for global growth,” says James Hogan, chief executive officer of Etihad Airways.

The two airlines together will have a combined total of more than 40 million passengers a year, operate 233 aircraft and generate more than $9bn in revenues, according to Hogan.

Etihad Airway’s minority stake will consist of 27.03 per cent from a new share issue by Airbelin funded by operational cash flow and an existing interest of 2.99 per cent, which will amount to a total interest of 29.21 per cent. The new shares will be issued at $3.

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