Air Berlin (1991) (Berlin Tegel) is considering outsourcing some routes and operations to its Austrian unit, Niki (Austria) (Vienna), inside sources have informed the Süddeutsche Zeitung.

The move is part of a renewed turnaround plan that aims to generate EUR400 million (USD440 million) in earnings for the loss-making German carrier in 2016, they stated.

On the back of a EUR247.6 million (USD272.4 million) first half loss, Air Berlin last week said it was in the process of completing a fundamental review of its current network operations. According to the newspaper report, certain loss-making routes may be transferred to the Austrian carrier's domain in a move that would mirror rival Lufthansa (LH, Frankfurt International) Group's regional and longhaul budget plans for Eurowings (EW, Düsseldorf).

Other options Air Berlin is currently considering are the outsourcing of MRO and certain administrative functions to Niki, where costs are 'significantly' lower than at their German parent.

Once the review is completed, Air Berlin says it will spend the second half of the year optimizing its internal business processes while increasing focus on its core business.