Air Berlin files for bankruptcy

The second biggest German airline, Air Berlin, has filed for bankruptcy, following the announcement by the main shareholder, Etihad Airways, that it will no longer fund the company.

The Federal Ministry for Economic Affairs and the Federal Ministry of Transport of Germany responded immediately with a joint press release in order to let travelers know that their summer vacations will not fall through and said that the government would provide a loan of EUR 150 million, allowing the company to keep realizing flights for the time being.

– We're in a time when many tens of thousands of travelers and vacationers are in multiple international holiday spots. Otherwise the return flights of these travelers back to Germany with Air Berlin would not have been possible – the ministries said.

Air Berlin was in a process of restructuring in an attempt to stay in business and has been sustained in the past few years by Etihad, whose stake amounts to 29.2%.

Lufthansa said that it supported the restructuring efforts and that the planes it had rented would continue with the usual activities.

Lufthansa also said that it was “already in negotiations with Air Berlin to take over parts of the Airberlin Group and is exploring the possibility of hiring additional staff”.

The ministries confirmed that Air Berlin had been negotiating with Lufthansa and another airline for a long time.

Air Berlin recently reported a net loss of EUR 782 million.

airberlin

Etihad Airways

Deutsche Lufthansa AG Frankfurt/Main

Air Berlin

Air Berlin bankruptcy proceedings

Etihad Airways

Lufthansa

Federal Ministry for Economic Affairs of Germany

Federal Ministry of Transport of Germany