IAG is to buy the assets of NIKI from Air Berlin in a deal worth €20m (£17.8m).
Companies: International Consolidated Airlines Group SA
International Airlines Group (LON: IAG) has announced today it will acquire all the assets of Austrian airline NIKI, who were part of the now-defunct Air Berlin Group, for €20m (£17.8m).
The acquisition adds NIKI to IAG's portfolio of airlines which includes British Airways, Aer Lingus, Iberia and Vueling.
A newly formed subsidiary of Vueling will make the acquisition which includes up to 15 aircraft and slots at airports such as Vienna, Dusseldorf, Munich, Palma and Zurich. 740 former NIKI employees will be employed under the subsidiary.
News of the deal comes two months after Easyjet announced it would boost its German presence by acquiring €40m worth of aircraft and slots from Air Berlin.
Willie Walsh, IAG chief executive, said:
"NIKI was the most financially viable part of Air Berlin and its focus on leisure travel means it's a great fit with Vueling. This deal will enable Vueling to increase its presence in Austria, Germany and Switzerland and provide the region's consumers with more choice of low-cost air travel".
Air Berlin was one of three European airlines to cease trading in 2017 after struggling for years. UK-based Monarch announced it had gone begun insolvency proceedings in October, while Alitalia announced it gone into administration in May 2017.
IAG jumped 2% to 660p with the news.
