Air Berlin and TUIfly have ditched plans for a cross-shareholding. However the planned takeover of TUIfly’s city carrier business by Air Berlin would still proceed, leaving the charter sector as TUIfly.

The two companies had agreed earlier this year to a cross-shareholding in which Air Berlin would take a stake of up to 20 percent in TUIfly, which would in turn acquire a reciprocal stake in Air Berlin via a capital increase.

Air Berlin said yesterday that TUI Travel would either acquire a 9.9 percent stake in the carrier or pay compensation of 15 million euros, but did not say why the two companies had decided to scrap plans for a cross-shareholding.

Germany’s Federal Cartel Office has already approved Air Berlin’s takeover of TUIfly’s city carrier business, but not the possible acquisition of a minority interest in Air Berlin by TUIfly, Air Berlin said.