Air Berlin to discuss transfer of tourism arm to new carrier

Air Berlin agreed to discussions for the transfer of its tourism arm to a new carrier to be formed by Etihad Airways PJSC and TUI AG.

The 35 aircraft it was now operating would be combined with TUIfly,

"TUI AG, Etihad Aviation Group and Air Berlin PLC intend to finalise an in-principle agreement in due course. Any agreement entered into will be subject to all necessary corporate and regulatory approvals," TUI AG said in a statement.

No transaction value was given for the deal.

In the previous week, Air Berlin anounced 1,200 layoffs and another deal by which it would rent 40 aircraft to its main domestic rival, Deutsche Lufthansa.

Cumulative losses of €1.2bn since 2012 were the chief factor behind the budget carrier´s recent decisions.