Ryanair along with other rivals of Germany’s second largest airline Air Berlin claims that they are attracted on purchasing the company.
Air Berlin said it would file insolvency last August 15 following the statement of its largest shareholder Etihad Airways PJSC saying it would end financial support to the company. For the past six years, Air Berlin racked up as much as €2.7 billion (3.2 billion in USD) worth of losses.
Michael O’Leary, chief executive of Ryanair, said on August 23 that the Irish airline has the power to purchase Air Berlin, only if it hasn’t been ignored. O’Leary is worried if the company will be in an all-German deal as it will be handed to Deutsche Lufthansa AG. Still, he didn’t release any remarks on whether the company is interested in lengthy routes.
National flag carrier Lufthansa is already equipped on bidding the group to boost its position in the German market. Carsten Spohr, CEO of Lufthansa already said that it is willing to take several of employees from Air Berlin as it was interested in about half of the operations of the German airline.
Ryanair has been pursuing the shares of the market through natural growth and has been avoiding takeovers along with cutting price fares. Given that Germany has the biggest economy in the world. In an interview with O’Leary, he suggested that there are just a few carriers along with the 25 percent of the market in Germany that are on sale, adding that there are several airlines that showed interest in Air Berlin, only if this was an “arms-length”.
O’Leary asked the Air Berlin if it needs a loan worth €150 million this coming summer season. He is still concerned of the politicians that are looking to rush an agreement with biggest German airline Lufthansa, given that CEO of Air Berlin Thomas Winklemann worked to the company for more than 18 years.
Winklemann is still doubtful on the released reports showing that the data room of Air Berlin has been opened to about 10 airlines ever since it specified last May that is desires a business partner, which Ryanair has been given access to. As of today, Air Berlin have not provided any data access and didn’t show any interest from the Intro Aviation of German airline entrepreneur Hans Rudolf Woehrl.