German lawmaker blasts EU for opposing Niki sale to Lufthansa

The German government will probably lose a €150 million government-backed loan to insolvent Air Berlin because the European Union opposed Lufthansa’s purchase of Air Berlin’s Austrian unit, Niki, a senior member of Chancellor Angela Merkel’s conservatives said on Sunday.

The British Airways owner said on Friday that it would buy Niki for €20 million and provide additional liquidity to the company of up to €16.5 million, closing the final chapter in the demise of Air Berlin. Air Berlin filed for insolvency earlier this year.

“The damages will be borne by creditors and German taxpayers, who will see nothing of the Air Berlin bridging loan in the amount of €150 million,” said Hans Michelbach, deputy leader of the Bavarian CSU party in Parliament and financial spokesman for the conservative bloc.

The situation would have been different if Lufthansa had been allowed to buy the airline for nearly €200 million euros, he said. Lufthansa backed out of an agreement to buy Niki after the European Commission indicated it would block the sale.

The German government also criticised the Commission’s position earlier this month, forecasting only part of the loan from the KfW bank would be...