EANS-News: Air Berlin PLC & Co. Luftverkehrs KG / The way is now clear for airberlin´s strategic partnership with Etihad Airways

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Capital measures/Capital increase - investment agreement Etihad
Airways

Subtitle: • Mehdorn: "The beginning of a successful collaboration" •
Connecting flights from Berlin to Abu Dhabi added • 24 codeshare
flights, linked frequent flyer programs and mutual maintenance of
aircraft • Working groups will identify synergies

London/Berlin (euro adhoc) - Following regulatory clearances by
German and Austrian authorities, airberlin, Germany´s second largest
airline, and Etihad Airways, the national airline of the United Arab
Emirates, have today finalised the participation agreement entered
into on 19th December 2011 which increased Etihad Airways´ capital
share of Air Berlin PLC. airberlin has received around EUR73 million
for the 31,574,312 shares issued for capital increase, based on a
fixed rate of EUR2.31 per share. Etihad Airways has now become the
largest single shareholder of airberlin. Etihad Airways´ minority
share is composed of the newly acquired shares (27.03%) and existing
shares of 2.99% (before dilution), which provides Etihad with a
voting interest of 29.21%.

airberlin CEO Hartmut Mehdorn said: "I am confident that this is the
beginning of a very successful collaboration which will benefit our
customers and our company. It opens up unique possibilities for joint
future market development and provides the prerequisite for increased
synergy and cost optimisation."

The two companies have already formed joint working groups in order
to achieve results as quickly as possible. Mehdorn: "airberlin and
Etihad Airways can learn from one another, in order to better meet
the needs of our passengers. The addition of the flight to Abu Dhabi,
the codeshare agreement, the mutual recognition of frequent flyer
programs and the mutual maintenance of aircraft in Dusseldorf and Abu
Dhabi will set a new pace - a challenge which airberlin and Etihad
Airways will meet together.

James Hogan, CEO of Etihad Airways, said: "We are delighted that all
the regulatory approvals have been concluded successfully and we can
now move forward with plans to create an outstanding offering for
passengers on our combined network. The partnership between Etihad
Airways and airberlin will have a positive market impact, stimulating
competition and ultimately benefiting passengers across the globe.
It is a significant milestone in our history and the first step in
what will be a very positive association over the coming years."

Less than four weeks after the agreement between airberlin and Etihad
Airways had been signed, airberlin added Abu Dhabi to its flight
schedule on 15th January. Since then, an airberlin Airbus A330-200
has been flying non-stop from Berlin to Abu Dhabi four times a week
(Tuesday, Thursday, Friday and Sunday). Alongside the connections
offered by Etihad Airways, this provides European passengers with 29
flights per week operated by the strategic partners from four German
hubs (Berlin, Dusseldorf, Frankfurt, Munich) with Abu Dhabi as a
destination or stopover. By mid-April of this year, the number of
flights will increase to 42 per week.

The start of this new service also marks the beginning of the
codeshare agreement concluded between the two airlines on 19th
December 2011, which will initially include 24 flights in the route
network of both airlines and be expanded gradually. The agreement
currently includes the non-stop flights of both partner airlines from
Germany to Abu Dhabi and continuing connections from Abu Dhabi to
Bangkok, Male and Singapore. In addition, Etihad Airways offers the
airberlin flights to and from Basel, Catania, Copenhagen, Hamburg,
Hanover, Helsinki, Milan, Rome, Stuttgart, Venice and Zurich under an
Etihad Airways flight number. This is valid as of today (24th
January) also for airberlin flights from Dusseldorf to Miami, New
York-JFK, Salzburg and Vienna.

The airberlin flights from Berlin to Graz, Innsbruck, Salzburg and
Vienna will also be marketed by Etihad Airways.

Within the framework of the codeshare flights, airberlin and Etihad
Airways will also connect their airberlin topbonus and Etihad Guest
frequent flyer programs. By integrating the frequent flyer programs,
airberlin and Etihad Airways customers can earn both awards and
status miles on flights with the respective partner airline.
Frequent fliers who are topbonus Silver or Gold cardholders will
enjoy additional status benefits. These include use of the partner
airline´s priority check-in counter, pre-boarding and extra baggage
allowance on Etihad Airways flights. Frequent flyers with a topbonus
Gold Card can also access the exclusive Etihad Airways lounges at Abu
Dhabi, Dublin, Frankfurt, London and Manchester. Silver, Gold or Gold
Elite members of Etihad Guest who are flying with airberlin will also
receive the many benefits of airberlin's topbonus frequent flyer
program such as access to exclusive waiting areas.

Business Class customers traveling to and from Abu Dhabi can take
advantage of a limousine service. Passengers within a 40 km radius of
Berlin´s Tegel airport will be picked up at home and brought to the
airport by a chauffeur. After arrival in Abu Dhabi, Business Class
travelers have the opportunity to be driven to any destination in the
United Arab Emirates. This service is also available for the return
flight. The Etihad Airways codeshare connection from Germany to Abu
Dhabi gives Business Class passengers access to an airport transfer
service with private driver from Frankfurt and Munich within a radius
of 40 kilometers and from Dusseldorf within 60 kilometers.

In the course of establishing Etihad Airways` flights from Abu Dhabi
to Dusseldorf and airberlin´s flights to Abu Dhabi, the two companies
have entered into mutual maintenance agreements. In Dusseldorf,
airberlin technik - the aeronautical equipment service provider
within the airberlin group - performs the transit check on the Etihad
Airways Airbus A330; Etihad Airways performs the same task for
airberlin aircrafts in Abu Dhabi.

Further inquiry note:
Uwe Berlinghoff
Senior Vice President Communications airberlin
phone: + 49 30 3434 1500
fax: + 49 30 3434 1509
e-mail: abpresse@airberlin.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

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: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English