Talks Underway between Air Berlin, TUIfly

German airlines Air Berlin and TUIfly are in advanced talks for a cross-shareholding agreement, according to a Reuters report. TUIfly is owned by German tourism giant TUI.

Under the proposed deal, Air Berlin would acquire a 20 percent stake in TUIfly, and TUI would acquire a 20 percent stake in Air Berlin via a capital increase, Reuters reported.

Air Berlin would take over TUIfly’s scheduled city routes, while TUIfly would continue to operate charters. About 15 of TUIfly’s aircraft would fly under Air Berlin’s banner, a person familiar with the matter told Reuters.