Arab airline interested in Air Berlin stake

Air Berlin LogoBerlin - Air Berlin declined comment Friday on a media report that Abu Dhabi-based Etihad Airways is interested in taking a share in the German carrier.

"We do not comment on market rumours," a spokeswoman for Germany's second biggest airline after Lufthansa said.

The daily Sueddeutsche Zeitung reported Friday that the board of the state-owned United Arab Emirates airline had been considering a taking a state in Air Berlin for weeks, but had not reached a decision.

Following the report, Air Berlin shares jumped more than 15 per cent to 5 euros (7 dollars).

The newspaper, which quoted aviation sources for its information, said Air Berlin could be used as a feeder airline for passengers using Etihad's long-distance flights.

Taking a state in the German airline would also improve the Arab carrier's position in negotiations for new routes to Germany.

Around two-thirds of Air Berlin's shares are in diversified holdings. Largest shareholder is US businessman Leonard Blawatnik, with a stake of 18.94 per cent. (dpa)

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