How UAE defence giant EDGE Group plans to double its exports
The UAE defence conglomerate has put an aggressive strategy in place to increase its share of exports while navigating the growing gap between East and West.
Air Berlin has increase its participation in NIKI Luftfahrt with the indirect acquisition of 25.9% of the shares of NIKI at a price of €21 million, thereby increasing its shareholding in the Austrian carrier from 24% to 49.9%.
In connection with the deal, Air Berlin will grant the private Lauda foundation a €40.5 million loan. The private foundation has the option to repay the loan in three years, either in cash, or through the transfer of the remaining 50.1% of NIKI Luftfahrt GmbH’s shares.
Niki Lauda will remain at NIKI Luftfahrt GmbH's disposal for at least another three years. The implementation of the measures described above remains subject to receiving the necessary anti-trust approvals. NIKI will be fully consolidated within the Air Berlin Group though it will remain a legally independent company with its own management. The NIKI brand will continue to exist for the foreseeable future.
Joachim Hunold, CEO of Air Berlin, commented, "Following years of successful co-operation and partnership with NIKI, the increase of Air Berlin's participation is a logical development. NIKI's network complements Air Berlin's network very well. For Air Berlin, the Vienna hub opens up an additional access to the fast-growing markets of Eastern Europe."
Ulf Hüttmeyer, CFO of Air Berlin, added, "The increase of Air Berlin's participation in the profitable NIKI Luftfahrt which, counter to the trend witnessed in the airline sector, continued to expand in the past year and can show respectable financial figures, increases the value of Air Berlin."
"It is important to me that we can provide NIKI with a broad base for future growth,” remarked Niki Lauda. “The intensified co-operation with Air Berlin will make us more profitable, more efficient and more attractive to the passengers."
NIKI's integration into the Air Berlin Group increases Air Berlin's fleet size by eleven aircraft. Based on the provisional figures for the 2009 business year, the number of passengers transported by the Air Berlin Group will increase by 2.6 million – at a fleet capacity utilisation rate of 77%. According to the provisional figures, NIKI Luftfahrt achieved a revenue of €260.2 million – an increase of 17% over the previous year, and an EBIT (earnings before interest and taxes) of €23.1 million, up 71% over the 2008 business year.
For the current business year, NIKI has planned an expansion of its network. The planned connections include Sofia, Bucharest, Copenhagen and Nice. Additional flight routes to Olbia/Cagliari, Belgrade and Barcelona complement Air Berlin's existing flight network.
The UAE defence conglomerate has put an aggressive strategy in place to increase its share of exports while navigating the growing gap between East and West.
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.