Principal Shareholder Etihad Has Withdrawn Financial Support From The Carrier

airberlin, Germany's second-largest airline, has declared insolvency after Etihad, its principal shareholder, said it would no longer be financially supporting the carrier.

In a news release, the airline said it had commenced insolvency proceedings under self-administration at the local District Court (Amtsgericht) of Berlin-Charlottenburg, in order to continue with the restructuring process that is already underway. “We are working tirelessly to achieve the best possible outcome for the company, our customers and employees, given the situation,” said Thomas Winkelmann (pictured), CEO of airberlin.

The Federal German Government, Lufthansa and other partners are supporting airberlin in its restructuring efforts. The Federal Government is supporting airberlin with a bridging loan to maintain flight operations for the long-term.

This means:

• All flights operated by airberlin and NIKI will continue as planned
• The flight schedule remains valid
• Bookings remain valid
• All flights can still be booked

Negotiations with Lufthansa and other partners regarding the acquisition of business units of airberlin are far advanced and highly promising. These negotiations may be finalized shortly, the carrier said in the release.

The airline has seen debt accumulating for nearly 10 years, according to a report from the BBC. In 2016, it reported a loss of about $919 million.

(Source: airberlin news release. Image from file)

FMI: www.airberlin.com