Etihad's Air Berlin deal wins regulatory backing

German and Austrian regulatory authorities have given their approval to a deal in which Etihad Airways will increase its shareholding in Air Berlin to 29.21 percent. Both airlines welcomed the approval on Tuesday, saying the partnership would offer passengers a combined global network of 239 destinations. Already, both airlines have announced a number of joint actions, including codesharing on a number of routes on each other's networks, integrating aspects of their frequent flyer programs, and mutual maintenance agreements in Abu Dhabi and Dusseldorf. Etihad said in December it will pay €72.9m ($94.5m) to increase its stake in Air Berlin, making it the airline’s largest single shareholder. James Hogan, Etihad Airways president and CEO, said: "We are delighted that all the regulatory approvals have been concluded successfully and we can now to move forward with plans to create an outstanding offering for passengers on our combined network. "The partnership between Etihad Airways and Air Berlin will have a positive market impact, stimulating competition and ultimately benefiting passengers across the globe. "It is a significant milestone in our history and the first step in what will be a very positive association over the coming years." Air Berlin CEO Hartmut Mehdorn added: "I am confident that this is the beginning of a very successful collaboration which will benefit the customers of both companies." Etihad Airways and Air Berlin carry a combined total of more than 40 million passengers a year, operate 233 aircraft and employ 18,000 people.