for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Ryanair expands in Germany, Austria with Laudamotion stake buy

BERLIN, March 20 (Reuters) - Ryanair plans to buy a stake in new Austrian leisure carrier Laudamotion, helping Niki Lauda to get the airline up and running and giving Ryanair a bigger foothold in Germany and Austria.

Ryanair has agreed to buy an initial 24.9 percent stake in Laudamotion, formed out of the insolvent Niki carrier that was part of Air Berlin, and plans for that to rise to 75 percent “as soon as possible”, subject to EU approval.

The Irish low cost carrier will invest under 50 million euros ($61.7 million) in the purchase, though will also provide an additional 50 million euros in funding for start-up and operating costs in the first year. ($1 = 0.8102 euros) (Reporting by Victoria Bryan Editing by Keith Weir)

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.


Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up