In return, British Airways is entitled to 25% of any profits made by Deutsche BA
until June 2006.
EasyJet last year secured an option to buy the airline, but decided not to proceed in March because of conditions in the German aviation market and a failure to agree employment terms with Deutsche BA
The carrier has decided to terminate the option to buy Deutsche BA
before 3 July 2003 due to German labour legislation and the aggressive pricing policy of Lufthansa.
easyJet is currently considering whether to proceed with its acquisition of the Munich-based unit of British Airways, and is attempting to bring contracts for Deutsche BA
's 200 pilots into line with those of other low-cost carriers.
But talks this week between Deutsche BA
and pilots failed to find a solution.
EasyJet blamed conditions in the German aviation market and a failure to agree employment terms with Deutsche BA
The news comes as easyJet, Europe's largest low-cost airline, is in failing takeover talks with the loss-making subsidiary of British Airways, Deutsche BA
Among other developments, easyJet said it was still considering whether to exercise an option to purchase the German airline Deutsche BA
. The move would provide a 'low risk, low cost' entry into the German market although it needs to be certain that Deutsche BA
could 'embrace easyJet principles'.
The fall came after the discount airline took an option to buy British Airways' German airline Deutsche BA
In brackets the index/price movement against previous quotation: DAX 6,523.00 (-227.12) MDAX 10,270.48 (-379.02) Adidas 56.94 (- 2.45) Allianz 82.28 (- 2.38) BASF 63.67 (- 2.53) Bayer 51.37 (- 2.36) Beiersdorf 50.91 (- 0.90) BMW 67.00 (- 2.84) Commerzbank 1.54 (- 0.09) Daimler 39.50 (- 1.73) Deutsche Bank 32.98 (- 1.50) Deutsche Ba
...rse 45.75 (- 1.84) Deutsche Post 13.30 (- 0.74) Deutsche Telekom 8.42 (- 0.13) E.ON AG 16.62 (- 0.49) Fresenius Med.
The company also retains an option over a possible takeover of BA's lossmaking German subsidiary, Deutsche BA
. A decision is expected later in the year.
A Deutsche BA
aircraft reportedly skidded off a runway at Germany's Munich airport yesterday (22 January) due to icy conditions.