FRANKFURT, Germany – Air Berlin PLC said Thursday it will close its dba airline unit at the end of November, a planned move to fold it into the parent company.
Munich-based dba's domestic flights within Germany will stop flying after Nov. 30 and its 120 pilots and 175 flight attendants will be offered similar jobs within Air Berlin.
Dba currently has a fleet of nine aircraft. Three of those planes, older Boeing 737s, will be retired from service.
Air Berlin, the third-biggest discount carrier in Europe behind Ryanair and easyJet, and Germany's second-biggest airline behind Deutsche Lufthansa AG, bought rival dba in 2006 which helped it increase its overall sales in the German market.
Managers of dba bought the company from British Airways PLC in 2003.
Air Berlin, one of the largest low-fare airline in Europe, has pulled out of talks to buy the German charter carrier Condor from Thomas Cook Group.
Air Berlin shares rose Friday after the deal for €475 million, or $750 million, was canceled by mutual agreement. Talks on an alternative transaction continue with Thomas Cook, the British travel operator, the companies said in a statement.
A 53 percent jump in the price of oil over the past six months has sent operating costs spiraling, pushing 25 carriers to cease operations or file for bankruptcy in the first half, according to the International Air Transport Association. The Berlin-based carrier had agreed to buy Condor to add routes and planes to compete with larger rivals Ryanair and EasyJet.
"There was no way that Air Berlin was in a position to consummate this deal," said Andrew Lobbenberg, an analyst at ABN AMRO in London who rates the company "sell." In addition, he said, to high oil prices, the carrier "has its hands full" with the integration of two other German purchases, LTU and Dba.
