Business Weekly - Cambridge, UK

The massive investment has come on the back of excellent Q3 and nine-month financial figures – a period which included the football World Cup – for the German airline, which counts London Stansted as one of its major international transport hubs.

In a statement issued in conjunction with its results, Air Berlin said it was purchasing the aircraft “in order to also be able to keep up with its European competitors in the future.”

Air Berlin’s CEO, Joachim Hunold, said: “By awarding this large contract, we are securing a favourable delivery price for the long term. The new planes are meant to replace expiring leasing contracts and to secure future growth.

“As was the case in the past, we aim to renew our fleet every six to eight years in order to be able to deploy the least noise-polluting, and the most fuel-efficient and cost-efficient airplanes. Through this order, we are renewing our strategic partnership with Boeing.”

Air Berlin will receive 60 Boeing 737-800 Next Generation jets. Since the acquisition of DBA also included the purchase agreement for 25 Boeing 737, Air Berlin is expecting a total of 85 planes to be delivered between 2007 and 2014.

The list price for the planes ordered amounts to approximately USD 5.7 billion (£2.9bn). By the end of the 3rd quarter, Air Berlin’s fleet consisted of 62 planes; dba deployed 29 planes. Air Berlin’s revenues for July to September 2006 have shown an increase of more than 28 per cent over the same period last year, reaching €510m (£344m) compared to €397.3m (£268m) over the same period in 2005. Pre-tax profit for Q3 was up 14.5 per cent to €44.96m.

Developments in the first nine months were just as positive, during which time Air Berlin realised €1.14 billion (£77m) in revenue, an increase of 19.58 per cent over the previous year’s.

Hunold said: “We have achieved our best quarterly result ever, even though the terrorist attacks in Turkey and flight cancellations due to increased security measures in London certainly did not pass us by without leaving a trace.”

There was also a 12.9 per cent increase in the number of passengers transported also deserves special mention. Including DBA – month of September –, Air Berlin transported 12,176,778 passengers in the first nine months of the year at a capacity utilisation of 80.14 per cent.At a level of 83.54 per cent in the third quarter, capacity utilisation – including DBA for September – was also at a high level. Revenue per available seat kilometere (ASK) in Q3 increased by 9.45 per cent.

• Air Berlin has announced it is now one of the first low-cost carriers to focus on the business trip and congress sector of the market, commonly known as the MICE segment: Meeting, Incentive, Congress, Event.

The new service was introduced at the European Incentive & Business Travel & Meetings Exhibition in Barcelona at the end of November. The launch also includes the establishment of a new service team within Air Berlin to focus solely on this area, aiming to improve the service and special offers available for business travellers.

During these flights drinks, sandwiches, newspapers and magazines will be available for passengers for free. Additionally, on selected routes, a special gourmet menu can be pre ordered. Air Berlin is already one of the few low-cost carriers to offer competitive rates for groups.