FRANKFURT: Abu Dhabi-based Etihad Airways said on Thursday it had pulled out of talks with TUI Group , Europe’s largest tour operator, aimed at creating a new joint venture holiday airline.
Under plans outlined last year TUI’s own airline TUIfly was to be merged with Air Berlin’s leisure airline Niki once Niki was bought out of Air Berlin by Etihad. The Gulf airline has a near 30 percent stake in Etihad.
Etihad said on Thursday that it was not able to reach agreement on the final nature of the joint venture despite “many months of negotiations,” while TUI said Niki was “no longer available” for a deal.
“A strong European leisure airline continues to make great strategic sense. After all, the aviation sector is characterised by overcapacity in Germany,” said Sebastian Ebel, TUI’s executive board member, said.
“However, Niki is no longer available for a joint venture. We will push the repositioning of TUIfly further ahead in order to develop long-term prospects for the airline and its employees,” Ebel said in a statement.
TUI said it remained open for partnerships and joint ventures.
As part of the deal Etihad was planning to buy Niki from Air Berlin before combining the business with TUIfly.
Air Berlin had already received €300 million ($337 million) from Etihad for Niki, according to Air Berlin’s annual report.
But Etihad said in the statement the leisure operations of Air Berlin group would now continue to operate as a separate business unit, under the Niki brand.
“Further details of this structure will be announced in due course by Air Berlin,” Etihad said.
Air Berlin said earlier that it was open to working with Lufthansa.
The airline booked losses amounting to €1.2 billion for the last two years, and depends on cash infusions from key shareholder Etihad for survival.
“We need to find a partner in 2017, and Lufthansa is a possible one,” said Air Berlin Chief Executive Thomas Winkelmann.
“I will look at everything that makes sense for Air Berlin and secures jobs in the long term,” he told Die Zeit weekly in an interview.
Executives from Germany’s second-largest airline presented a massive restructuring plan in late September that included renting 38 aircraft with crew to Lufthansa and slashing 1,200 jobs — or one in seven of its workforce.
Amid its restructuring, it has also been hit by a string of flight cancelations and severe delays, including over the recent Whitsun long weekend.
Winkelmann apologized to his clients for the problems, saying: “I am sorry for the delays. I myself am furious when there is a delay of more than ten minutes.”
But beyond the bad publicity caused by the delays, the airline would also have to pay a price.
According to Germany’s biggest daily Bild, compensation payments over the Whitsun weekend alone are expected to reach more than €500,000.
TUI, Etihad abandon plans to form new leisure airline
TUI, Etihad abandon plans to form new leisure airline
Closing Bell: Saudi benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
