News

Airberlin Files for Administration After Etihad Declines Further Funding

Airberlin Files for Administration After Etihad Declines Further Funding

Airberlin filed for administration on Tuesday 15th August after shareholder Etihad Airways issued a statement that it could not offer further funding.

The airline, which has accumulated debt for almost a decade, reported a record loss of €782 million in 2016. Flights continue to operate with the help of a transitional loan of €150 million from the German government. Airberlin’s main competitor, Lufthansa, is in talks to buy part of the Air Berlin Group.

Etihad Airways said that this latest development is “extremely disappointing for all parties”, especially as the airline “has provided extensive support to Airberlin for its previous liquidity challenges and restructuring efforts over the past six years.”

In April this year, Etihad provided €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. 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 said that Airberlin operations are expected to continue and that it would support Airberlin’s management during administration.

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 52 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 42 years.

More in News

Royal Caribbean International’s Team Ireland Hits the Road

Michael FloodSeptember 21, 2018

Travel Solutions Expands Premiership Football Programme

Neil SteedmanSeptember 21, 2018

World Travel Centre to Appoint Senior Business Consultant

Neil SteedmanSeptember 21, 2018

Dynamically Booking RCI Fly/Cruise Packages with AirWaves

Neil SteedmanSeptember 20, 2018

Turkish Airlines Adds New Services to Business Class

Neil SteedmanSeptember 20, 2018

Three New Sponsors for 2018 Irish Travel Trade Awards

Neil SteedmanSeptember 20, 2018

J Barter Travel to Appoint Full-Time Leisure Sales Consultant

Neil SteedmanSeptember 20, 2018

Intrepid Appoints Ireland-Based Business Development Manager

Neil SteedmanSeptember 20, 2018

Stena Line is Using Artificial Intelligence on Vessels

Michael FloodSeptember 20, 2018

Copyright © 2016 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland