Etihad-Owned Air Berlin Considers Splitting In Two

Air Berlin’s management is considering splitting the group in two, German magazine Focus reported on Sunday, citing remarks by one of the company’s senior managers.

Air Berlin could be divided into a unit that offers traditional scheduled flights and another that flies to tourist destinations, the magazine reported, citing senior vice president Detlef Altmann as saying such plans were being “examined”.

Air Berlin was not immediately available for comment.

The company, Germany’s No.2 airline after Lufthansa, earlier this month said it was looking at all options, including its business model, as it prepares to launch a fundamental restructuring aimed at restoring the loss-making airline to profitability.

Air Berlin, in which Gulf carrier Etihad owns a 29.2 per cent stake, has reported annual losses for five out of the past six years after rapid expansion left it saddled with debt.

Focus did not provide details on how splitting the company up would help improve its performance.