European Commission approves German rescue aid to Air Berlin

Background and further information:

The European Commission found that the loan would help to protect the interests of air passengers and to maintain air passenger services. The strict conditions attached to the measure, its short duration and the fact that Air Berlin was expected to cease operations at the end of the process were seen as reducing to a minimum the distortion of competition potentially triggered by the state support.

Germany notified the European Commission on 15 August of its intention to grant a bridging loan to Air Berlin, following the announcement that the company's main shareholder Etihad had decided to withdraw its financial backing. The German public credit institution was set to provide a credit facility of up to €150 million to Air Berlin, to allow the company to continue operations in the months to follow, with the aim of maintaining its services while it concludes ongoing negotiations to sell its assets.
The European Commission announced on 4 September 2017 its decision to endorse under EU state aid rules plans from Germany to grant Air Berlin a temporary €150 million bridging loan.

• Primary Source

RTÉ, 05.09.17: EU approves insolvent Air Berlin's €150m lifeline https://www.rte.ie/news/business/2017/0905/902352-race-for-air-berlin/

Deutsche Welle, 04.09.17: EU approves German financial lifeline to insolvent Air Berlin http://p.dw.com/p/2jKUL

The Local.de, 28.10.17: EasyJet to buy slice of Air Berlin's Tegel operations https://www.thelocal.de/20171028/easyjet-to-buy-slice-of-air-berlins-tegel-operations

ESO: Background information: Air Berlin files for bankruptcy protection http://www.europeansources.info/record/air-berlin-files-for-bankruptcy-protection/

The Local.de, 12.10.17: Lufthansa buys up lion's share of Air Berlin's planes https://www.thelocal.de/20171012/lufthansa-snaps-up-81-planes-3000-staff-from-air-berlin-ceo

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