The German airline industry looks set for further consolidation as the country's number two and three airlines, low-cost carriers Air Berlin and DBA, said they planned to merge.
Air Berlin, Europe's number three low-cost carrier, said in a statement it had acquired 100% of DBA's shares for around €50m. The exact purchase price was not revealed, but Air Berlin CEO Joachim Hunold said it was 'in the mid-two-figure millions'.
Air Berlin said there would be no adverse effects on earnings as a result of the acquisition, adding that the group was anticipating a 'handsome profit' for the whole of 2006.
Air Berlin and DBA have co-operated in ticket sales since last November, when they announced customers could buy tickets of both airlines on each other's websites. The latest move is expected to put further pressure on market leader Lufthansa.
DBA has a fleet of 29 aircraft and transported around 4.3 million passengers last year, generating sales of €404m. Air Berlin has a fleet of 58 aircraft, transported 13.5 million passengers and has annual sales of €1.2 billion.
