News for Europe/MEA

AFI KLM E&M director innovations James Kornberg confirmed trials of non-destructive testing eddy-current inspection technology at the company's Amsterdam engine unit (MRO Network, 16-Aug-2017). Mr Kornberg said efficiency increases through automation, made possible by the technology, "has resulted in a 50% reduction of process time with the ability to test with efficient use of resources". Mr Kornberg also confirmed collaborations with Donecle, a French drone aircraft inspection manufacturer, to develop a system of autonomous drones to detect airframe defects.

El Al CEO David Maimon confirmed (16-Aug-2017) the carrier's first Boeing 787-9 aircraft will arrive in Aug-2017 and enter service in Aug/Sep-2017. Mr Maimon added: "This plane is the first out of 16 to reach by the end of 2020". CFO Dganit Palti said the carrier paid "advances totaling approx USD24 million for the aircraft it has acquired" in 2Q2017. [more - original PR]

airberlin appointed specialist insolvency lawyer Dr Frank Kebekus of Kebekus et Zimmermann and Dr Lucas Flöther of Flöther & Wissing to direct the airline's insolvency proceedings (Wirtschaftswoche/Berliner Zeitung, 15/16-Aug-2017). Dr Kebekus expects the carrier's employees to be paid salaries as usual in Aug/Sep/Oct-2017. He added: "we will finance the insolvency with a bank" in Nov-2017.

airberlin CEO Thomas Winkelmann commented on the German Government's EUR150 million bridging loan, stating: "The speed with which all parties in the government worked impressed me... We avoided a national disaster" (Die Zeit/The Business Times, 16/17-Aug-2017). Mr Winkelmann reportedly expects the airberlin brand to eventually dematerialise, as rival carriers express interest in the carrier.

IAG purchased (15-Aug-2017) 310,074 ordinary shares of EUR0.50 each in the capital of the company on 14-Aug-2017. All of the shares will be held in treasury until cancelled. Following the purchase, IAG holds 52,935,234 treasury shares, and issued share capital consists of 2,080,053,509 shares (excluding shares held as treasury shares). [more - original PR]

Ryanair lodged (15-Aug-2017) competition complaints with the German Bundeskartellamt and the EU Commission regarding the "obvious conspiracy playing out in Germany", between the German Government, Lufthansa and airberlin, to "carve up" airberlin's assets. Ryanair also alleged the parties are "excluding major competitors and ignoring both EU competition and State Aid rules". Ryanair stated: "This manufactured insolvency is clearly being set up to allow Lufthansa to take over a debt free Air Berlin which will be in breach of all known German and EU competition rules". [more - original PR] [more - CAPA Analysis]

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]

Senegal's President Macky Sall reportedly appointed Philippe Bohn as Air Senegal CEO, replacing Mamadou Lamine Sow (afrique-sur7.fr/Reussir Business/Seneweb.com/Xalimasn.com, 14-Aug-2017). Mr Sow was appointed chairman, replacing Thierno Niane.