Air Berlin files for insolvency proceedings as Lufthansa swoops for takeover

17 August, 2017, 06:58 | Author: Regina Lloyd
  • Bulgaria Ryanair Filed a Complaint with the EU over Air Berlin Bankruptcy

The agreement was part of a plan backed by Air Berlin's biggest shareholder, Gulf carrier Etihad, to restructure the loss-making Germany airline.

Given the situation, CEO of Air Berlin Thomas Winkelmann said that "we are working tirelessly to achieve the best possible outcome for the company, our customers and employees".

The ministries also said they expected a decision from Lufthansa and another airline concerning the sale of parts of the business in coming weeks.

The German government is providing the carrier with a €150 million bridge loan whose flights will continue while insolvency proceedings are underway.

With the support of the government, Lufthansa and other partners, Air Berlin said all flights, including ones operated by Niki, would operate as planned, bookings remain valid and flights can still be reserved.

Air Berlin accumulated over €2.7 billion or $3.2 billion in losses in about six years and has €1.2 billion of net debt.




Lufthansa is negotiating over buying Air Berlin planes, which are still flying following a 150m euro German government loan.

Air Berlin's insolvency surfaced as thousands of people in Germany are using airline services to enjoy summer holidays, as well as just ahead of general election in September.

Etihad, which has a 29.2pc stake in the carrier, said Air Berlin's business had "deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges". At the time, those included Etihad and its airport services subsidiary, Air Berlin, Alitalia, Air Serbia and Air Seychelles Ltd. In its own statement, Lufthansa verified that it is in negotiations to take over portions of Air Berlin Group. Etihad, which owns nearly 30% of Air Berlin, said the developments were "extremely disappointing" but it could not keep injecting cash, after investing an additional €250m in April.

Neither the German government nor Lufthansa have commented on Ryanair's assertion.

"We'll continue to grow organically, adding new aircraft, new bases and new frequencies" said Mr Jacobs. "We are confident that solutions can be found within the framework of European Union law", a Commission spokesman said.

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