Air Berlin Files for Bankruptcy Protection After Etihad Pulls the Plug on Financing

By Christian Stampfer on 15 August 2017
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IMG_9193 (1)MUNICH—Air Berlin, Germany’s second largest airline, said it filed for bankruptcy protection after its largest shareholder, Abu Dhabi-based Etihad, said it would pull the plug on financing the carrier.

The filing of the provisional insolvency proceeding took place at the local court of Berlin-Charlottenburg or Amtsgericht Charlottenburg.

The move came after years of unsuccessful turnaround attempts at the Berlin-based carrier and comes at the height of the summer travel season.

Air Berlin, which carries an average of 80,000 passengers daily, will receive a loan from the German government of €150 million ($176 million) to keep the airline from stranding passengers at a time of peak travel.

“We’re in a time when many tens of thousands of travelers and vacationers are in multiple international holiday spots,” the Federal Ministry for Economic Affairs and Energy or Bundesministerium für Wirtschaft und Energie and Federal Ministry of Transport and Digital Infrastructure or Bundesministerium für Verkehr und digitale Infrastruktur said in a joint statement Tuesday.

“The return flights of these travelers back to Germany with Air Berlin would not have been otherwise possible.”

Lufthansa, the country’s largest airline, said in a statement it was already negotiating to take over some parts of Air Berlin’s operations and might hire some of its employees.

(Photo: Accura Media Group)

Accura News

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