Germany's Lufthansa to buy Air Berlin assets

By Abdulselam Durdak

FRANKFURT, Germany (AA) - German airline Lufthansa will buy Air Berlin's assets after the budget carriers insolvency, executive said on Thursday.

Lufthansa CEO Carsten Spohr told local media in Berlin his company will sign a deal to buy Air Berlin’s 81 planes and take on its 3,000 employees.

Spohr said the deal would take effect on Thursday.

Air Berlin, Germany's second-largest passenger carrier, confirmed last month it was negotiating with other airlines to sell its assets after filing for insolvency in August.

Air Berlin’s insolvency came after its main shareholder, Etihad, stated it would not give further financial support to the German airline.

The carrier, which had accumulated debt since 2008, announced a record loss of over €780 million ($910 million) last year.