EasyJet reportedly eyes German airline to duck Brexit

EasyJet is in talks to acquire TUIfly, a board member of the German carrier said Friday, as the British no-frills airline seeks ways to keep flying freely within the EU.

Talks have been going on "for some time", said Martin Locher, an employee representative on TUIfly's supervisory board.

TUIfly -- a subsidiary of leading tour operator TUI -- was in discussions with EasyJet as well as "another airline in a European country outside Germany" about a possible takeover, Locher told a press conference in Frankfurt.

German business weekly Manager Magazin on Thursday reported that EasyJet was eyeing TUIfly as a takeover target as it looks for ways to soften any potential fallout following Britain's vote in favour of exiting the European Union.

An EasyJet spokeswoman told AFP on Friday that the company does not comment on speculation. Shares in EasyJet were down 1.4 percent at 1,031 pence in London afternoon deals.

EasyJet chief executive Carolyn McCall had ruled out takeovers just a few months ago, Manager Magazin reported, but with post-Brexit uncertainty looming she "wants to avoid a big risk for the firm with the surprising U-turn".

EasyJet already became the first UK carrier to activate a contingency plan after the June 23 Brexit vote, when it announced in July it had applied for an air operator certificate (AOC) to continue operating routes throughout the bloc.

Acquiring TUIfly could allow EasyJet to secure a foothold in the EU and escape ill effects as the United Kingdom quits the economic bloc.

As an EU member, British airlines have until now been covered by the EU's Single European Sky system, which lifts trade restrictions on airlines with their headquarters inside the 28-member union.

Beyond escaping Brexit, adding TUIfly's network and 41 aircraft to EasyJet could allow the British carrier to build on its lines in Germany and mainland Europe.

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