The airlines announced in March that Air Berlin would acquire up to 20% of TUIfly and TUIfly would take a similar stake in Air Berlin. However, TUI Travel issued a statement Monday saying: "Following discussions with the German Federal Cartel Office, the parties have amended the terms of the transaction and will not implement the cross-shareholdings that were previously announced. The other commercial agreements and the strategic benefits of the transfer of TUIfly’s scheduled flying business will remain.

TUI Travel will now either acquire a 9.9% stake in Air Berlin for a cash consideration of €33.5m, which it will sell over a period of time, or alternatively will pay Air Berlin €15m. Air Berlin will no longer acquire a stake in TUIfly.

TUI Travel will also no longer receive the right to nominate a non-executive director to the board of Air Berlin."

The transfer of TUIfly’s scheduled flying operations will be implemented by the end of October, with Air Berlin initially operating 13 of TUIfly’s aircraft for winter 2009/10, increasing to 14 in summer 2010. TUIfly will retain its charter portfolio.

TUI has also entered into an agreement to sub-charter one additional aircraft to a third party for winter 2009/10 and will remove a further aircraft from the fleet in May 2010, bringing the total number operating in its charter business in Germany to 23 from summer 2010.