EasyJet and Ryanair should be wary of launching Air Berlin bid | Nils Pratley

The Irish carrier is right to smell a stitch-up to hand the ailing airline to Lufthansa - but rivals should not be forced to overpay

There's nothing like the failure of a competitor to perk up other airline's share prices. Sure enough, as Air Berlin filed for insolvency on Tuesday, almost every other European airline gained altitude. EasyJet's shares were up 4.5%, Ryanair's by 3.3%, British Airways owner IAG's by 2.9%, and even little Wizz Air improved 4.6%.

The reaction makes sense. Air Berlin has been loss-making for years but it is still a top 10 European airline, measured by numbers of passengers, and thus has been able to irritate rivals by merely surviving. That is why one reason why low-cost winners, such as easyJet and Ryanair, grumble about irrational economics and the current state of overcapacity in the market.

Related: EasyJet could swoop for parts of Air Berlin as it goes into administration