Air Berlin steps up its expansion

Pricing pressures have prompted consolidation in the airline industry

German airline Air Berlin has said it will buy charter rival LTU for 140m euros ($187m; £95m).

In a separate deal, Air Berlin also said it was buying a 49% stake in the Swiss operator Belair Airlines.

Following the deals, Air Berlin will be the fourth-biggest airline in terms of European traffic, behind Ryanair, Air France/KLM and Lufthansa.

Air Berlin has been buying rivals after first selling shares to investors in May 2006 to raise money for expansion.

Since then, it has bought rival airline DBA, and ordered 60 new Boeing aircraft.

Air Berlin says that LTU will remain independent within the group and that its brand will be retained "in the foreseeable future".

LTU operates 15 medium-haul and 11 long-haul aircraft. It employs 2,244 staff and transported 5.3 million passengers last year.

To help finance the deal, Air Berlin said it would take on between 190m euros and 200m euros of debt.

Belair Airlines is a subsidiary of the Hotelplan Group and currently operates three aircraft.