Air Berlin files for Bankruptcy

AirBerlin B737-800 By Felix Gottwald - www.felixgottwald.netFelix Gottwald

German carrier Air Berlin (AB/BER) has today filed for bankruptcy protection in the Berlin courts.

The airline has posted losses for the last nine years and its biggest investor, Abu Dhabi based Etihad Airways has decided to end financial support for the struggling carrier.

Air Berlin entered into a codeshare agreement last year with Flybe that gave Welsh passengers access to Air Berlin’s long-haul network from Cardiff Airport via Dusseldorf & Berlin.

It is understood that the German Government has provided a bridging loan of €150m.

National carrier Lufthansa appears to be looking to take control of at least part of Air Berlin. In a statement, they said “Lufthansa is already in negotiations with the Air Berlin Group to take over parts of Air Berlin. Lufthansa intends to conclude these negotiations successfully in due course.”

A spokesperson for Etihad said: “This development is extremely disappointing for all parties especially as Etihad has provided extensive support to Air Berlin for its previous liquidity challenges and restructuring efforts over the past six years.”

“As a minority shareholder, Etihad cannot offer funding that would further increase our financial exposure. We remain open to helping find a commercially viable solution for all parties.”

On Twitter Air Berlin CEO, Thomas Winkelmann said: “All flights operated by airberlin & NIKI will continue as planned and our flight schedule remains valid!”

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About the Author

Nick Harding

Nick is the senior reporter and editor at Aviation Wales as well as working freelance elsewhere. He has his finger firmly on the pulse on Aviation, not only in Wales but worldwide. Nick has been asked to speak in a professional capacity on LBC, Heart and other broadcast networks.

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