Air Berlin eyes low-cost crown

Air Berlin is hoping to end Ryanair and easyJet's dominance of the European low-cost flights sector by funding expansion through a stock market flotation.

UK travellers could be set to benefit, as the money raised should allow Europe's third biggest budget airline to fund more routes outside its native Germany, increasing competition and driving down prices.

Air Berlin already flies from four UK airports to a host of destinations in Germany, Spain and continental Europe. It also offers domestic services between Stansted and Glasgow and Manchester.

But the no-frills airline hinted that it would begin scrapping for more business across Europe after it lists its shares.

"If we want to continue our growth within the context of tough European competition, we will have to be in an appropriate position as far as the capital side is concerned," said CEO Joachim Hunold.

He added: "We are floating the company because we want to capitalise on our market opportunities."

The timing of the listing is yet to be decided.

Air Berlin is Germany's second largest airline after Lufthansa, carrying 13.5 million passengers in 2005.

© Adfero Ltd