Niki

Niki was an Austrian leisure airline founded by the racing champion Niki Lauda in 2003. It was folded into Air Berlin, then grounded on 14 December 2017 after Lufthansa's takeover collapsed. Its assets passed to Lauda's Laudamotion in early 2018.

How it started

Niki was founded by the former Formula One driver Niki Lauda, who had earlier created Lauda Air. According to Wikipedia, Lauda acquired some assets of Aero Lloyd Austria in 2003, and the new airline, branded simply Niki, began scheduled services on 28 November 2003. Airline Geeks reports that it flew from Vienna to holiday destinations such as Greece, Tunisia, Egypt and the Canary Islands, on both scheduled and travel-agency charter flights. In January 2004, just over a month after starting, it announced a cooperation with Air Berlin.

The heyday

Although often described as low-cost, Niki offered fuller service than the label suggests. Wikipedia notes that it provided free refreshments, newspapers and baggage, with gourmet menus from Demel available to order in advance. Simple Flying, citing a 2004 Guardian interview, says Lauda captained its flights at least twice a week. Alongside Vienna, it flew from Salzburg, Graz and Innsbruck.

Air Berlin bought out Lauda in 2011 and the two airlines were fully integrated, sharing booking systems, aircraft and operations. Niki became an affiliate member of Oneworld in March 2012 as an Air Berlin subsidiary, and from late 2012 its aircraft were repainted in Air Berlin colours with the Niki logo near the nose. Shortly before the shutdown, its fleet was listed as 15 Airbus A321s, 2 A320s and 13 Boeing 737s operated by TUI fly Deutschland (the fleet table is marked "citation needed" on Wikipedia). Its Austrian network was cut back in 2017, to 20 destinations from 34 the year before.

What went wrong

• Niki's fortunes were tied to Air Berlin. In October 2014 it dropped Copenhagen, Moscow and Frankfurt for lack of demand, and in December 2016 Air Berlin announced it would sell its 49 per cent stake to Etihad. Wikipedia says that sale never happened.
• On 17 August 2017 Air Berlin filed for insolvency. Niki was kept out of those proceedings, and on 12 October Lufthansa agreed to buy it, with plans to absorb it into Eurowings.
• The European Commission signalled it would not approve the deal. ch-aviation quotes Lufthansa as saying the Commission considered its offer of slots insufficient. Lufthansa withdrew on 13 December 2017.

FlightGlobal reports that Air Berlin had warned Lufthansa's was the only viable bid, and that Niki would have to file for insolvency if clearance did not come before 21 December.

The last flight

Niki filed for insolvency and grounded its flights on 13 December 2017. Wikipedia gives 14 December 2017 as the date it ceased all operations. The route of the final flight is not documented in the sources consulted. LoyaltyLobby reports that the Austrian government promised to repatriate stranded passengers.

What happened next

On 29 December 2017 IAG, the parent of British Airways and Vueling, agreed to buy major parts of Niki for €36.5 million. These included 15 A321s and traffic rights at several airports, and IAG planned a new Austrian Vueling subsidiary. After a Berlin court ruled on 8 January 2018 that only an Austrian court could handle the insolvency, a new sale process began in Austria. On 23 January, Aviation Week reported that Niki Lauda's Laudamotion had won, ahead of IAG.

Laudamotion had begun as the charter firm Amira Air, which Lauda took over in 2016. It started commercial flights in 2018, and One Mile at a Time described it as Niki coming back to life, with 14 Airbus aircraft initially. Ryanair agreed to buy a stake in Laudamotion within two months, and Wikipedia says eleven Niki aircraft were in Laudamotion's service by April 2018. Niki Lauda died in 2019.

Sources: Wikipedia: Niki (airline), FlightGlobal, ch-aviation, Aviation Week, Airline Geeks, Simple Flying, One Mile at a Time, LoyaltyLobby