Air Finance Journal Copying and distributing are prohibited without permission of the publisher

News Analysis: Etihad CFO on acquiring Air Berlin stake

19 December 2011

James Rigney talks about negotiating the deal which includes a $255 million loan to Air Berlin from Etihad's own balance sheet.

Tags: Etihad  |  Air Berlin  |  James Rigney

While Etihad's purchase of a 29.21% stake in Air Berlin is small in dollar terms (about $95 million), it is a game changer for Etihad.

The Abu Dhabi carrier has improved access to Europe through its purchase of a stake in the German carrier, and will increase pressure on European legacy carriers like Lufthansa, KLM, and IAG Group.

The deal involves a smaller airline buying up almost one third of larger carrier. Air Berlin had revenue last year of about $5 billion compared to Etihad's $4 billion during the same period.

In addition to injecting equity into Air Berlin, Etihad will also lend the airline $255 million over five years.


Speaking to Airfinance Journal by phone from Berlin, James...


Featured deal

Awas / 04-14 / Airc Sec Loan / 3xA320 13/05/2014
Latest Deal Status Financial close
Overall Arrangers Helaba Bank
Assets A320
Law firm Clifford Chance, Norton Rose

Latest Poll

Do you think export credit should be more expensive?






Upcoming Events