 Air Berlin and other carriers are facing a changing and tough market |
Budget German airline Air Berlin has bought domestic rival DBA as it looks to fight off fierce competition. The airline did not disclose what it paid for the former division of UK carrier British Airways, but said the acquisition would not hurt earnings.
Air Berlin also forecast that it would post a profit this year, which helped to lift its shares by 11%.
The move comes as the airline industry tries to deal with problems such as high fuel costs and terror alerts.
Good fit
Air Berlin's chief executive Joachim Hunold said that the route networks of Air Berlin and DBA complemented each other.
The majority of Air Berlin's routes are from Germany to airports in or around the Mediterranean, while DBA is mainly a domestic carrier.
The two airlines will carry an estimated 20 million passengers annually, and buying DBA also will give Air Berlin access to Munich and Duesseldorf airports.
Air Berlin listed its shares earlier this year on Frankfurt Stock Exchange to raise funds to help finance its expansion.
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