Airberlin administration

GERMAN carrier Airberlin has filed for administration, just a few months after Etihad injected €250 million into the airline.

Airberlin said it had no choice but to commence insolvency proceedings after Etihad declined to provide further support.

EY said the situation was “extremely disappointing” particularly given its contribution to Airberlin’s restructuring efforts over the last six years.

“Airberlin’s business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges & from implementing alternative solutions,” Etihad said.

Etihad Airways owns almost 30% of the airline, saying “under these circumstances, as a minority shareholder, Etihad cannot offer funding that would further increase our financial exposure”.

Operations at Airberlin are continuing thanks to a €150 million loan from the German government.

CEO Thomas Winkelmann confirmed negotiations with rival Lufthansa and other partners regarding the acquisition of business units of Airberlin are “far advanced and highly promising.

“We are working tirelessly to achieve the best possible outcome for the company, our customers and employees.”

Airberlin is part of the oneworld alliance, which said while bookings, flights & schedules will be maintained as normal it would continue to offer the alliance’s usual services and benefits.

Etihad equity investments in other airlines include Virgin Australia, India’s Jet Airways, Air Serbia, Air Seychelles and Alitalia, which also filed for bankruptcy earlier this year ( TD 03 May).