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IAG creates Austrian budget arm with Niki purchases
British Airways and Iberia owner IAG has swooped to buy assets and invest in Niki, a former part of the collapsed Air Berlin group.
IAG's Spanish budget arm, Vueling, will buy 20m of assets from the Austrian airline and provide up to 16.5m of liquidity to Niki, which will form part of a new, separately run Austrian subsidiary.
The assets include up to 15 Airbus A320 aeroplanes and an "attractive" portfolio of slots at various airports including Vienna, Dusseldorf, Munich, Palma and Zurich.
The new Vueling unit plans to employ approximately 740 former NIKI employees to run the operation.
IAG chief executive Willie Walsh 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".