Air Berlin files for insolvency after losses mount - The National

Air Berlin files for insolvency after losses mount - The National:

"Air Berlin, Germany’s second-largest airline, filed for insolvency proceedings after it ran into operational and financial difficulties following years of losses. Air Berlin no longer has “a positive continuation prognosis”, as its main shareholder, Etihad Airways, withdrew financial support, the European carrier said in a statement on Tuesday. Etihad, which bought a 29.2 per cent stake in the German carrier in 2011, said in a statement that the move to seek administration was “disappointing for all parties”, especially, as the Abu Dhabi-based operator provided extensive support to Air Berlin for its previous liquidity challenges and restructuring efforts over the past six years. “In April this year, Etihad provided €250 million of additional funding to Air Berlin as well as supporting the airline to explore strategic options for the business,” an Etihad spokesperson said in statement. The business of the discount airline, however, had deteriorated at an unprecedented pace, which prevented it from overcoming its problems and pursuing alternative rescue plans, the spokesperson said."



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