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Your email address will not be published.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 50 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 40 years.

More in News

The AmaPrima docked in Amsterdam.

AMA/KLM/Sunway Host Agents to Lunch with Style in Amsterdam

Michael FloodSeptember 23, 2017
Turkish Airlines B787-9 Order

Turkish Airlines Commits to Order 40 Boeing 787-9 Dreamliners

Neil SteedmanSeptember 23, 2017
IMG_4239

Brendan Barry Wins Two Tickets on Sri Lankan Airlines

Ian BloomfieldSeptember 22, 2017
IMG_4294

John Cassidy and Eileen Penrose Win Amadeus Golf Day

Ian BloomfieldSeptember 22, 2017
Ryanair Aircraft

CAR Update on EU240 Compensation with Ryanair

Michael FloodSeptember 22, 2017
Tourism Thailand + THY 1

Elaine and Aoife Win Places on Tourism Thailand + Turkish Airlines Mega Fam – Cork Winner Tonight!

Neil SteedmanSeptember 21, 2017
Finnair eNews Story 5

Win a Two-Night Break for Two in Helsinki with Finnair and Sokos Hotels

Michael FloodSeptember 21, 2017
Qatar Airways Chauffer Service

Arrive in Style with Qatar Airways Luxury Global Chauffeur Service

Neil SteedmanSeptember 21, 2017
Sinead Reilly, Strategic Account Director, Northern European Region, Travelport

Travelport Appoints Sinead Reilly in New Role of Strategic Account Director for Northern Europe

Neil SteedmanSeptember 21, 2017

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