Air Berlin files for bankruptcy protection

Author (Corporate)
Series Title
Series Details 15.08.17
Publication Date 15/08/2017
Content Type

The German low cost airline Air Berlin filed to commence insolvency proceedings under self-administration on the 15 August 2017, in order to continue operations after its main shareholder Etihad turned off the money supply for the struggling airline

The Federal German Government, Lufthansa and other partners said they would support Airberlin in its restructuring efforts. The Federal Government were supporting Air Berlin with a bridging loan of €150m to maintain flight operations for the long-term.

Commentators analysed the causes of the airline's decline and warned against further government cash injections.

Irish carrier Ryanair filed complaints with German and EU competition agencies. They accused the German government of helping prepare a Lufthansa takeover, violating anti-trust laws.

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.

On the 12 October 2017 Lufthansa announced that it would buy up more than half of the aircraft of Air Berlin. Air Berlin wass 'continuing to negotiate' with Easyjet over the sale of a number of other aircraft. Ryanair again said it would protest the move to the EU competition authorities, as it was a way of boosting Lufthansa's Eurowings budget subsidiary.

Source Link
Related Links
The Guardian, 15.08.17: EasyJet could swoop for parts of Air Berlin as it goes into administration
Deutsche Welle, 16.08.17: Ryanair lodges complaint over Air Berlin bankruptcy
Euro|Topics: Debates, April 2017: Why Air Berlin is bankrupt / Fixed game for Air Berlin?
BBC News, 16.08.17: Ryanair accuses Lufthansa of Air Berlin 'conspiracy'
The, 16.08.17: Five things you need to know after the Air Berlin insolvency
Deutsche Welle, 12.10.17: Lufthansa has bought a large chunk of Air Berlin
BBC News, 12.10.17: Ryanair to challenge Lufthansa's Air Berlin deal
The, 27.08.17: German, Italian airlines flying towards consolidation

Subject Categories ,
Countries / Regions