EtihadAviation Group andTUI Grouphave abandoned their plan for a leisure joint venture based onAir Berlin'sAustrianaffiliateNikiand German-basedTUIfly.

Talks on the proposal will not continue as "Nikiis no longer available for a joint venture", says TUI.

From 12 to 30 June flights to EU countries from 763 UAH one way

Etihad, meanwhile, says the decision followed "many months of negotiations, in good faith, during which time the parties have been unable to reach agreement on the final nature of such a joint venture".

The intention had been to establish a new leisure carrier with around 60 aircraft – fromNikiandTUIfly– within the context ofAir Berlin's latest restructuring efforts.

Ukraine Aviation Portal

As it is halving its fleet to 75 aircraft and cutting its network to concentrate on scheduled flights,Air Berlinhas transferred all routes from Germany to southern Europe (except Italy), Turkey and North Africa over toNikifor the summer 2017 schedule.

Some 35Air Berlinaircraft were transferred toNiki. But the formation of the proposed new carrier and the addition ofTUIfly's operation were delayed.

"The leisure operations ofAir BerlinGroup will now continue to operate as a separate business unit, under theNikibrand," saysEtihad. "Further details of this structure will be announced in due course byAir Berlin."

In the view of TUI executive board member Sebastian Ebel – who oversees the group's business in Austria, Germany, Poland and Switzerland – "a strong European leisure airline continues to make great strategic sense" as "the aviation sector is characterised by overcapacity in Germany".

He adds: "We will push the repositioning ofTUI flyfurther ahead in order to develop long-term prospects for the airline and its employees."

TUI says it wants to "contribute to the stabilisation of the German aviation market" and is open to other joint-venture options.