Air Berlin, TUIfly To Enter Cross-Shareholding

Air Berlin said it was in advanced negotiations for a cross-shareholding with TUI Travel's TUIfly that would give it access to the unit's route network.

Under the planned deal, TUI Travel's unit would take a stake of up to 20 percent in Air Berlin via a capital increase, and the German carrier would acquire a corresponding percentage of TUIfly, Air Berlin said on Tuesday.

Air Berlin would then take over TUIfly's city route sector, while the charter sector would remain with TUIfly.

Final approval of the TUI Travel and Air Berlin board was still outstanding, Air Berlin said.

TUI Travel was formed in 2007 from the merger of TUI's travel division and Britain's First Choice.