IAG to acquire much of bankrupt Air Berlin's Niki division

BERLIN (AP) - International Airlines Group, the parent of British Airways and Iberia, says it's acquiring much of bankrupt Air Berlin's Niki division.

German news agency dpa reported that IAG said Friday it will pay 20 million euros ($24 million) for Austria-based Niki and inject another 16.5 million euros into the company. It will found a new Austria-based subsidiary of budget airline Vueling, taking on up to 15 Airbus A320 jets.

Germany's Lufthansa withdrew a bid for Niki earlier this month as it sought European Union approval to acquire large parts of Air Berlin. That forced Niki, which continued flying after Air Berlin ended operations in October, to file for bankruptcy and ground its fleet.

Lufthansa then secured EU approval to take over some Air Berlin operations, while easyJet is acquiring another part.