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.
