EasyJet PLC (LON:EZJ) shares flew higher after the budget airline agreed to buy some assets at Berlin Tegel Airport from the insolvent Air Berlin for €40mln.
The carrier said in a statement that it will take over Air Berlin's landing slots and leases for up to 25 A320 aircraft at the airport.
Shares gained 1.34% to 1,290p in morning trading.
Air Berlin filed for insolvency in August after main shareholder Etihad withdrew its financial support but the airline has been able to continue operating with a loan from the German government.
Earlier in October, Air Berlin agreed to sell to Lufthansa its Austrian airline - Niki, regional unit, LGW, and an additional 20 aircraft for a combined €210mln.
EasyJet said in a statement on Monday that its deal with Air Berlin is expected to close in December.
The airline plans to take on 1,000 of Air Berlin's pilots and cabin crew as part of the deal.
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EasyJet's existing base is at Berlin Schönefeld and the acquisition will make it the leading airline in Berlin, the group said.
“This agreement is consistent with EasyJet's strategy of purposeful investment in strong number one positions in Europe's leading airports (or number two to a legacy incumbent),” it said.
“This will enable EasyJet to operate the leading short haul network at Tegel connecting passengers to and from destinations across Germany and the rest of Europe. “
EasyJet will operate a reduced timetable at Tegel during the winter season but plans to operate a full schedule from the summer season 2018.