EasyJet shares in rapid ascent as McCall makes Air Berlin swoop

easyJet flew higher on Monday after the budget airline inked a €40 million (£35.4 million) deal to buy a chunk of failed carrier Air Berlin.

The FTSE 100 firm will take on the leases of up to 25 A320 aircraft as well as landing slots at Berlin’s Tegel airport.

It is also looking to take on around 1,000 of Air Berlin’s pilots and cabin crew.

EasyJet said the purchase will make it the leading airline in Berlin. Credit Suisse analyst Neil Glynn said that position “should be helpful to returns”.

It agreed the deal on Friday after the markets closed, and announced it formally to the City on Monday.

The company, founded by 34% shareholder Sir Stelios Haji-Ioannou, was one of the biggest risers on the blue-chip index following the update.The shares rose 29p to 1302p.

The firm first confirmed in September it had submitted a proposal to the overseers of Air Berlin’s insolvency to acquire parts of the short-haul business.

German flag carrier Lufthansa has signed a €210 million deal to buy the bulk of the remaining business.

Air Berlin filed for insolvency in August after shareholder Etihad pulled the plug.

The swoop could be followed by more acquisitions before easyJet chief executive Carolyn McCall leaves next year to join ITV.

EasyJet has submitted offers to buy parts of Italy’s insolvent airline Alitalia, and Monarch Airlines, which collapsed earlier this month.