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airberlin Files For Insolvency, But Still Flying

German Government, Lufthansa Offering Support


airberlin filed to commence insolvency proceedings under self-administration at the District Court (Amtsgericht) of Berlin-Charlottenburg today (Aug. 15), in order to continue with the restructuring process that is already underway.

The airline said that the Federal German Government, Lufthansa and other partners are supporting its restructuring efforts.

Adding that the Federal Government is supporting airberlin with a bridging loan to maintain flight operations for the long-term.

As a result:

  • All flights operated by airberlin and NIKI will continue as planned
  • The flight schedule remains valid
  • Bookings remain valid
  • All flights can still be booked

Lufthansa said in a statement that it is supporting the restructuring efforts of the airline jointly with the German government.

LH also said that this also ensures that all aircraft that are currently operated by airberlin under a wet lease agreement for Eurowings and Austrian Airlines will continue operating as before.

Lufthansa noted as well that it is already in negotiations with airberlin to take-over parts of the airberlin Group and is exploring the possibility of hiring additional staff. Lufthansa intends to conclude these negotiations successfully in due time.

In another development, Etihad Airways said in a statement on airberlin’s insolvency filing that “this development is extremely disappointing for all parties, especially as Etihad has provided extensive support to airberlin for its previous liquidity challenges and restructuring efforts over the past six years.”

Etihad’s statement continued, “In April this year, Etihad provided EUR 250 million of additional funding to airberlin as well as supporting the airline to explore strategic options for the business. However, airberlin’s business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions.”

And it said that, “Under these circumstances, 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.”

Etihad added, “We expect airberlin operations to continue during administration. We have a commercial relationship with airberlin across a range of areas, including codeshare operations, and we will support airberlin’s management during these difficult times.”

The statement concluded, “Germany is an important market for Etihad and Abu Dhabi, and we remain committed to providing comprehensive air links as a key enabler of trade and tourism.”

 

 

Posted in Airlines, News

 

 

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