EANS-News: Air Berlin PLC & Co. Luftverkehrs KG / Etihad Airways becomes biggest single shareholder in airberlin

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Capital measures/Strategic co-operation - shareholding

Subtitle: - Etihad Airways to increase stake in airberlin to 29 per
cent as part of a wide ranging strategic partnership - Combined
network of 239 destinations - airberlin to launch Berlin-Abu Dhabi
flights - Etihad Airways to provide five-year financing facilities of
up to US$ 255 million to support fleet development and future network
growth

London/Berlin (euro adhoc) - Etihad Airways, the national airline of
the United Arab Emirates, has agreed to increase its stake in
airberlin, Europe´s sixth largest airline, to 29.21 per cent,
becoming airberlin´s largest single shareholder.

The strategic move, announced today in Berlin by Etihad Airways Chief
Executive Officer James Hogan and airberlin CEO Hartmut Mehdorn,
connects the airlines´ extensive networks and frequent flyer programs
to offer travellers 239 destinations across 77 countries.

Hartmut Mehdorn said: "The strategic partnership with Etihad Airways
opens up enormous opportunities for the future of our company."

"This applies especially to future market development and the
realization of synergies."

"One of the key components of the new partnership is the launch of
airberlin services to Abu Dhabi, which will become our new gateway to
Asia and Australia."

"The agreement with Etihad Airways will also dramatically improve the
global connectivity of our customers in Germany, Switzerland,
Austria, and throughout the GCC and Middle East."

James Hogan said the deal was one of the most important in Etihad
Airways´ history.

"This new partnership expands our network reach, gives us access to
33 million new passengers, and provides us with a real opportunity
for global growth. Through airberlin, we gain immediate access to a
broad and complementary European market, with outstanding
connectivity options for customers of both airlines."

"Our partnership strategy has been integral to our success over the
past eight years, and the returns we have seen from this strategy
have confirmed its value."

"We are always looking for ways to grow and partnerships are a smart
way to enhance our ability to compete on the world stage."

"We now have a portfolio of 34 quality airline partners, but this is
our first equity investment in another airline. It is a sign of our
confidence in airberlin´s management and in the carrier´s potential
to grow with us."

"We expect such growth will also offer a host of additional
employment opportunities, both in Europe and the United Arab
Emirates," Mr. Hogan said.

"Etihad Airways and the airberlin group carry a combined total of
more than 40 million passengers a year, operate 233 aircraft, and
employ 18,000 people. Together, the companies generate more than US$
9 billion in revenues."

"We estimate each airline could achieve incremental revenues of
between EUR 35 million and EUR 40 million just in the first year, and
we believe the partnership has enormous potential to unlock a range
of efficiencies."

Under the partnership:

- airberlin will shift its Middle East operation from Dubai to Abu
Dhabi; - airberlin will operate four A330-200 flights a week between
Berlin and Abu Dhabi from January 15, 2012 - with European travellers
having immediate access to a total of 29 flights a week to and
through Abu Dhabi from four German hubs, with a plan to increase to
42 flights from mid-April; - the airlines will implement an extensive
codeshare agreement, with Etihad Airways codesharing on 36 of
airberlin´s 171 destinations and airberlin codesharing on 24 of
Etihad Airways´ 82 passenger destinations, and plan further expansion
of the pool of codeshare routes; - Etihad Airways will sign codeshare
agreements with the airberlin group for all European activities
including NIKI, the Austrian airline, and Belair, the Swiss airline;
and - Etihad Guest and topbonus, the airlines´ frequent flyer
programs, will be integrated, enabling passengers of both airlines to
`earn and burn´ on each other´s flights and offering reciprocal
benefits - including status earning - to top tier members.

Under the agreement, Etihad Airways will have two seats on the Board
of Directors of the Air Berlin PLC.

The two companies will seek anti-trust immunity, which would allow
greater coordination of route networks and of sales and marketing
activities. airberlin and Etihad Airways are committed to creating a
joint procurement taskforce to look for cost efficiencies across the
two companies, including areas such as fleet procurement and
deployment, maintenance, repair and overhaul (MRO) and general
procurement.

Etihad Airways´ minority stake will consist of 27.03 per cent from a
new share issue by airberlin, funded from operational cash flow, and
an existing interest of 2.99 per cent (pre-dilution), which will
amount to a total interest of 29.21 per cent. The new shares will be
issued at a price of EUR 2.31.

Further inquiry note:
Uwe Berlinghoff
Senior Vice President Communications airberlin
phone: +49 30 3434 1500
e-mail: abpresse@airberlin.com

end of announcement euro adhoc
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company: Air Berlin PLC & Co. Luftverkehrs KG
The Hour House, High Street 32
UK-WD3 1ER Rickmansworth, Herts
phone: +49 (0)30 3434 1500
FAX: +49 (0)30/3434-1509
mail: abpresse@airberlin.com
WWW: http://www.airberlin.com
sector: Air Transport
ISIN: GB00B128C026
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English