Airberlin Bankrupt : Etihad Airways Issues A Statement. Flights Will Continue On Current Schedule.

Air Berlin, Germany’s second-largest carrier, has filed for bankruptcy today. This came after Etihad Airways announced all financial support.

The airline, which has accumulated debt for almost a decade, reported a record loss of 782m euros in 2016.

Flights will continue to operate thanks to a transitional loan of 150m euros from the German government.

It means: All flights from airberlin and NIKI are operating and the current flight schedule as well as booked flights are valid. airberlin and NIKI are continuing to accept future bookings.

Negotiations between airberlin and Lufthansa among others are continuing and are expected to finalize.

Air Berlin CEO Thomas Winkelmann said: “We’re working hard on this situation to do what is the best for the company, our clients.

 In the meantime UAE based Etihad Airways issued 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 EUR 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.