Budget airline Air Berlin plans further growth

The German airline, the country's second-largest, has said the move will fund expansion as demand for budget air fares continues to rise.

The low-cost airline saw its sales rise 17% to 1.22bn euros (�836.8m) in 2005.

Air Berlin did not say when its shares would be listed, but the firm said it planned to adopt the British public limited company (Plc) structure.

'Harsh competition'

Air Berlin recently received a 130m euro injection from its owners, ahead of the planned flotation.

"If we want to continue to grow in Europe amid harsh competition we have to be appropriately prepared on the capital side," said Air Berlin boss Joachim Hunold.

Budget airlines have grown dramatically in recent years, as passengers' appetite for short-haul breaks has grown, posing a serious threat to the national carriers which had previously dominated the market.

Air Berlin's plan to float follows UK budget airline Easyjet's announcement of four new direct services to European locations including to Berlin, scheduled to start on May 3.

Air Berlin, which saw its passenger numbers increase by 12.5% in 2005 to 13.5 million, focuses on direct flights from German airports to Mediterranean locations in Spain, Greece, Turkey as well as North Africa.