Monday, 23 October, 2017

Airberlin Files for Bankruptcy as Key Shareholder Stops Funding

German carrier Air Berlin's aircrafts are German carrier Air Berlin's aircrafts are
Juana Turner | 16 August, 2017, 05:35

"The reason for this conclusion is that its main shareholder Etihad Airways PJSC has notified Air Berlin PLC of the fact that it will not provide any further financial support to the Air Berlin group", it added.

Air Berlin has filed for bankruptcy protection less than two weeks after it opened bookings for its new Toronto-Dusseldorf flights.

The German government has had to step in with a loan of €150 million (£136 million) so that flights can keep running for the next three months.

Meanwhile, Lufthansa said it was in talks to take over parts of airberlin's business, a Reuters report said.

Air Berlin's filing to begin insolvency proceedings came after losses of 782 million euros in fiscal year 2016 and 447 million euro in fiscal year 2015.

Etihad last provided additional funding of 250 million euros to Air Berlin in April.

Bonds issued by an Etihad Airways-related special goal vehicle are down more than six points after Air Berlin filed for insolvency on Tuesday.

At a news conference, Germany's Economy Minister, Brigitte Zypries, said the government's emergency loan should allow flights at the airline to continue for three months.

Turkish Airlines brings 60 tons of food aid to Somalia
Air Berlin files for insolvency proceedings as Lufthansa swoops for takeover

Etihad confirmed that it expects the German airline to continue operations during administration.

Lufthansa says it is "jointly with German government" supporting Air Berlin's restructuring effort.

A spokesperson for the European Commission said it was in " constructive contact" with Germany about the Air Berlin issue.

In a statement, Etihad said the company had "deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions".

The discount carrier already has links to Lufthansa, once its arch-rival, following an agreement to lease out part of its fleet to Europe's third-biggest airline group.

"Coupled with the toxic situation at Alitalia and the sale of Darwin Airline, it looks like Etihad is re-evaluating its position and is probably better off concentrating on its own organic expansion as opposed to be side-tracked by equity stakes that have not delivered the rewards that had been envisioned", said Ahmad.

Ryanair said Air Berlin was being prepared for a Lufthansa takeover, which it said would breach competition laws.

Ryanair airline recently complained to the Bundeskartellampt about a deal under which Lufthansa subsidiaries Eurowings and Austrian airlines hired Air Berlin craft and crew to fly routes for them.

Recommended

  • Powerball jackpot rolls to $430 Million

    Powerball jackpot rolls to $430 Million

    A Texas man who graduated from high school in Denison has won a $1 million prize from the Iowa Lottery. This is the third time this year that the Powerball jackpot has exceeded $400 million.

    Central Intelligence Agency head expects more Nth Korea missile tests

    Trump wrote on Twitter on Friday that U.S. "Using one issue as a tool for exerting pressure on another is clearly inappropriate". But McMaster stressed the US military is "locked and loaded" in case it needs to be called into action. "During the visit, Gen.
    Colorado DJ's suit against Taylor Swift dismissed

    Colorado DJ's suit against Taylor Swift dismissed

    This celebrity courtroom drama came to an end - at least where Taylor Swift is concerned - when on Friday, August 11, U.S. Kesha has since returned to music with her new album Rainbow that features the singles "Praying" and "Learn to Let Go".
  • Assam floods: Death toll touches 99; rail, road connectivity disrupted

    Assam floods: Death toll touches 99; rail, road connectivity disrupted

    Chief Minister also visited Aithan Ring Bund at Bogibeel, Dibrugarh and took stock of the condition of the flood affected people. A third wave of floods hit Assam on Friday, inundating over 700 villages in 15 districts and affecting over three lakh people.
    Charlottesville: Car-ramming suspect charged with murder

    Charlottesville: Car-ramming suspect charged with murder

    Far-right activists flocked to Charlottesville for the rally while hundreds of anti-fascists turned up in a counter protest. Fields was initially turned down, but he enlisted in the late summer of 2015.
    Kellen Moore struggles in Cowboys' preseason loss

    Kellen Moore struggles in Cowboys' preseason loss

    The Rams chose the prolific Eastern Washington product in the third round, hoping to add playmakers to the NFL's worst offense. Elliott and Prescott worked out on the Coliseum field before the game and then watched from the sideline in uniform.
  • Scaramucci: Trump needs to move away from 'Bannonbart nonsense'

    McMaster, who had told ABC the events in Charlottesville were "a criminal act against fellow Americans", calling it "terrorism". And if he does that, he'll have a very successful legislative agenda that he'll be able to execute.
    Liverpool squad revealed for Champions League qualifier

    Liverpool squad revealed for Champions League qualifier

    The 30-year-old coach guided Hoffenheim to a fourth-placed finish in the Bundesliga last term - their best-ever finish in the club's history.
    Barratt Developments Plc (LON:BDEV) Receives Sell Rating from Shore Capital

    Barratt Developments Plc (LON:BDEV) Receives Sell Rating from Shore Capital

    Reckitt Benckiser Group Plc now has a consensus rating of "Hold" and an average price target of GBX 8,129.38 ($105.87). RBC Capital Markets maintained Old Mutual plc (LON:OML) on Thursday, December 10 with "Underperform" rating.
  • President Trump blames 'many sides' for Charlottesville unrest

    President Trump blames 'many sides' for Charlottesville unrest

    Twenty-year-old James Alex Fields Jr .is charged with second-degree murder and other counts in the vehicle crash. Cory Gardner , a Colorado Republican , says that the president "must call evil by its name".
    Venezuelan lawmaker ordered assassination of Sen Marco Rubio, Mexicans contracted for hit

    Venezuelan lawmaker ordered assassination of Sen Marco Rubio, Mexicans contracted for hit

    The Department of Homeland Security issued a memo that was law enforcement sensitive but not considered classified. USCP has not requested assistance at this time", DHS spokesman Dave Lapan said in a statement to CBS News.
    Top general warns North Korea: US military is ready

    Top general warns North Korea: US military is ready

    He says now there are tough talkers on both side of the conflict, when before North Korean leader Kim Jong Un was the tough talker.

Vigil held in Madison to support Virginia victims Vigil held in Madison to support Virginia victims Elisa Rivera said she and her family came to show solidarity with the victims. "If you have extras to share they are appreciated". Kason Little, 17, plans to hold the vigil at Winfield Scott Plaza by the Martin Luther King, Jr.

Daesh suspect kills policeman in Istanbul Daesh suspect kills policeman in Istanbul Turkey was hit in 2016 by a succession of attacks that left hundreds dead in the bloodiest year of terror strikes in its history. A police officer was killed in Istanbul late on Sunday after being stabbed by a Daesh suspect, according to police sources.

Sea search continues for journalist in submarine mystery Sea search continues for journalist in submarine mystery The mysterious disappearance sparked an hourslong air and naval search for the missing sub amid a flurry of speculation. He made a last-minute escape from the sinking vessel on Friday and has denied any responsibility for Ms Wall's fate.