airberlin files for insolvency proceedings, Etihad intends to no longer offer financial support

15 August, 2017

airberlin filed (15-Aug-2017) to commence insolvency proceedings, in order to continue with "the restructuring process that is already underway". The proceedings are due to Etihad Airways intending to no longer provide airberlin with financial support. airberlin stated Germany's Federal Government, Lufthansa and other partners are "supporting airberlin in its restructuring efforts", with the Federal Government offering an EUR150 million bridging loan to maintain flight operations. The carrier confirmed all services operated by airberlin and NIKI will continue as planned, bookings remain valid and all services can still be booked. Etihad Airways stated the development is "extremely disappointing for all parties, especially as Etihad provided "extensive support to airberlin for its previous liquidity challenges and restructuring efforts over the past six years". Etihad provided EUR250 million in additional funding to airberlin in Apr-2017, however stated: "airberlin's business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions". Etihad intends to "support airberlin's management during these difficult times", while emphasising: "we have a commercial relationship with airberlin across a range of areas, including codeshare operations". [more - original PR - airberlin] [more - original PR - German - BMVI] [more - original PR - German - ver.di union] [more - original PR - Etihad] [more - BMVI video] [more - CAPA Analysis]