Air Berlin's insolvency "extremely disappointing" - Etihad
Etihad announced on Tuesday that the company was "informed that Air Berlin has filed for administration."Source: B92
“This development is extremely disappointing for all parties, especially as Etihad has provided extensive support to Air Berlin for its previous liquidity challenges and restructuring efforts over the past six years," a statement said, and added:
“In April this year, Etihad provided EUR 250 million of additional funding to Air Berlin as well as supporting the airline to explore strategic options for the business. However, Air Berlin’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," the company said, noting that it "remaind open to helping find a commercially viable solution for all parties."
“We expect Air Berlin operations to continue during administration. We have a commercial relationship with Air Berlin across a range of areas, including codeshare operations, and we will support Air Berlin’s management during these difficult times," Etihad said, and concluded:
“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.”