Air Berlin planning IPO to finance clash with Ryanair

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Source: © Irish Independent
http://www.unison.ie/irish_independent/ & http://www.unison.ie/

Air Berlin planning IPO to finance clash with Ryanair

Thursday March 9th 2006
Susanna Ray

AIR Berlin, Europe's third-biggest discount airline, plans to sell shares to the public to finance an expansion and confront larger competitors Ryanair and Easyjet.

The sale follows last year's €130m capital increase by current investors including Kim Lundgren, the American pilot who founded the company in 1978, managing director Joachim Hunold said yesterday.

The stock will be traded in Frankfurt, with the initial sale managed by Commerzbank AG and Morgan Stanley.

Air Berlin in September received the first of 60 new Airbus SAS A320 airplanes it ordered to challenge fellow discounters as well as network carriers such as Deutsche Lufthansa AG. Low-cost airlines hold 21pc of Germany's market, up from 1pc five years ago.

Air Berlin yesterday said 2005 earnings before interest, taxes, depreciation, amortisation and rent totalled €153m.

Full-service airlines will "feel the brunt" of the IPO, as it will give Air Berlin "increased access to capital, which will help their expansion" and increase competition on European routes, said John Mattimoe, an analyst with Merrion Capital Group.

© Irish Independent
http://www.unison.ie/irish_independent/ & http://www.unison.ie/