COLOGNE (dpa-AFX) - British Airways owner IAG said that it would buy the insolvent Austrian holiday airline Niki for 20 million euros. IAG would also provide additional liquidity to the company of up to 16.5 million euros.
Niki was previously owned by Air Berlin, which filed for insolvency in August after its biggest shareholder, Etihad Airways, withdrew financial support.
German carrier Lufthansa scrapped plans to purchase Niki in mid-December.
The European Commission had expressed 'deep competition concerns' about a possible Lufthansa purchase of 81 Air Berlin and Niki jets.
It said that would limit choice for air travellers in Germany, Austria and Switzerland.
As a result, Niki grounded its planes, stranding thousands of passengers, after filing for insolvency protection.
IAG said it will run the airline as a new subsidiary of its budget carrier Vueling, retaining about 740 former Niki staff. The assets include about 15 planes, as well as slots in airports such as Vienna, Munich and Palma.
Copyright RTT News/dpa-AFX