Airberlin announced yesterday (August 15) that it had filed for insolvency at the local district court of Berlin-Charlottenburg after Etihad withdrew its financial support.
Etihad’s 29.2% stake was purchased in 2011 and was part of a strategy that saw the carrier buy shares in number of smaller airlines across Europe.
In filing for provisional insolvency airberlin has ensured that all aircraft currently operated under a wet lease agreement for Eurowings and Austrian Airlines will continue as normal.
The move is part of ongoing restructuring efforts of the airlines which are being supported by Lufthansa and the German government.
Lufthansa is already in negotiations with airberlin to take-over parts of the airberlin Group and is exploring the possibility of hiring additional staff.
Etihad said in a statement: “We have been informed that airberlin has filed for administration.
“This development is extremely disappointing for all parties, especially as Etihad 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.
“We expect airberlin operations to continue during administration. We have a commercial relationship with airberlin across a range of areas, including codeshare operations, and we will support airberlin’s management during these difficult times.
“Germany is an important market for Etihad and Abu Dhabi, and we remain committed to providing comprehensive air links as a key enabler of trade and tourism.”
