Etihad and TUI decided yesterday (Thursday) that they would no longer create a new joint-venture, leisure airline. The plan outlined last year stated that Etihad would purchase Niki from Air Berlin, whom it owns 30% of, and then combine it with TUI’s German subsidiary TUIfly to create a new leisure airline.
The airlines were just not able to reach agreement after several months of different negotiations different sources said. The plan was to create one large airline for the German leisure market, which would be better for both airlines due to overcapacity in the market.
“We will push the repositioning of TUIfly further ahead in order to develop long-term prospects for the airline and its employees,” Sebastian Ebel from TUI said.