Air Berlin May Reorganize and Emerge with Closer Alitalia Ties

An Air Berlin aircraft in Miami

Air Berlin may be heading towards a reorganization that involves a closer working relationship with Alitalia.

The number two German airline’s shareholders, which include Gulf carrier Etihad Airways (which owns 29.21%), are in discussions to delist the airline from the stock market.

The news was first reported in the Handelsblatt on Tuesday.

A reorganization could make it possible to integrate Air Berlin with Alitalia, which is 49% owned by Etihad. Both airlines, already in a code-sharing agreement, are unprofitable.

Etihad took a 75% stake in the company that operates MilleMiglia, Alitalia’s frequent flyer program, last February, after acquiring 49% of the airline in 2014.

Shares of Air Berlin are currently trading near a 52-week low of €0.65, down from a 52-week high of €1.40.

(Photo: Accura Media Group)