Lufthansa’s subsidiary Eurowings will operate around 40 Air Berlin’s aircraft and their crew, as the Berlin-based airline faces financial trouble. The deal is reported to be concluded in the first week of October 2016 by the three parties, Lufthansa, Eurowings and Air Berlin. The deal might result in Air Berlin’s having to let go around 1,000 of its 8,600 workers in the coming months.

Lufthansa plans to use Air Berlin’s aircraft to expand Eurowings in the competitive LCC market where Ryanair has the majority of the market share.

Lufthansa’s decision would also provide financial support for Air Berlin which had lost up to EUR 1.17 billion (USD 1.32 billion) in the last three years. The largest shareholder of Air Berlin, Etihad Airways, has bailed the airline out to cover the losses.

Air Berlin and Etihad have code-shared their Middle East – Europe routes, making Berlin and Dusseldorf hubs for passengers from Asia and Middle East.