Air Berlin Files for Bankruptcy
Aug 15, 2017, 5:18 am
#1
Original Poster
Join Date: Mar 2007
Location: Berlin
Posts: 1,765
Air Berlin Files for Bankruptcy
Aug 15, 2017, 5:23 am
#2
Join Date: Oct 2014
Location: Germany
Programs: *G, OWS
Posts: 214
Apperently the german goverment is offering emergency loans - flights are supposed to continue for now (http://www.spiegel.de/ German only
Will be interesting to see what happens to TopBonus since ist owned by Ethiad...
Will be interesting to see what happens to TopBonus since ist owned by Ethiad...
Aug 15, 2017, 5:33 am
#3
Join Date: May 2007
Location: Zurich
Programs: BA GGL, TK*G EL, KL P ELPL, ex AB P, ex LH/LX Sen, HHonors D4L, Bonvoy P
Posts: 1,647
It seems that the procedure applied for, is permitting AB to continue to operate and find a solution in a defined period of time. Usually, the court would appoint an external insovency expert to supervise this process, but AB applies to do it themselves.
I'm not a specialist in german insolvency law, but AFAIK this procedure is requiring certain preconditions to be met. A court will decide.
Interestingly, they filed insolvency in Germany, although they are a UK registered firm ...???
I'm not a specialist in german insolvency law, but AFAIK this procedure is requiring certain preconditions to be met. A court will decide.
Interestingly, they filed insolvency in Germany, although they are a UK registered firm ...???
Aug 15, 2017, 5:33 am
#4
Original Poster
Join Date: Mar 2007
Location: Berlin
Posts: 1,765
Apperently the german goverment is offering emergency loans - flights are supposed to continue for now (http://www.spiegel.de/ German only
Will be interesting to see what happens to TopBonus since ist owned by Ethiad...
Will be interesting to see what happens to TopBonus since ist owned by Ethiad...
Aug 15, 2017, 5:39 am
#6
Original Poster
Join Date: Mar 2007
Location: Berlin
Posts: 1,765
Air Berlin Plc filed for insolvency proceedings after main shareholder Etihad Airways PJSC withdrew its financial support.
The discount carrier and subsidiaries submitted the filing in a local Berlin court, though it won’t seek bankruptcy protection for its Niki Luftfahrt GmbH and Leisure Cargo GmbH units, Air Berlin said in a statement. Talks with Deutsche Lufthansa AG and other parties regarding disposals are continuing, it said.
Air Berlin has been restructuring in an effort to stem years of losses, including leasing part of its fleet to Lufthansa. Plans to merge Niki with TUI AG’s German airline arm fell apart in June after Abu Dhabi-based Etihad said it failed to reach a deal on forming a joint venture for the operation.
The discount carrier and subsidiaries submitted the filing in a local Berlin court, though it won’t seek bankruptcy protection for its Niki Luftfahrt GmbH and Leisure Cargo GmbH units, Air Berlin said in a statement. Talks with Deutsche Lufthansa AG and other parties regarding disposals are continuing, it said.
Air Berlin has been restructuring in an effort to stem years of losses, including leasing part of its fleet to Lufthansa. Plans to merge Niki with TUI AG’s German airline arm fell apart in June after Abu Dhabi-based Etihad said it failed to reach a deal on forming a joint venture for the operation.
Aug 15, 2017, 6:16 am
#7
Join Date: Aug 2007
Location: Germany
Programs: Miles & More, Amex
Posts: 678
German news magazine DER SPIEGEL just reported that the German government gave a loan of 150 mio € to AB in order to avoid an immediate stop of all operations which would have been required otherwise (don't forget that we are in the middle of holiday season and no one is interested in lots of stranded families). This money can help AB to fly for about another 3 months. Additionally, the German government expressed hope that LH is able to take over some parts of AB.
Lets wait and see what happens.
Aug 15, 2017, 6:30 am
#8
Join Date: Oct 2014
Location: Germany
Programs: *G, OWS
Posts: 214
Quite interesting to see, especially if one considers that Italy gave AZ emergency loans of about 300 mio € in order to ensure that AZ stays flying while the bidding for AZ, or parts of it, is proceeding.
German news magazine DER SPIEGEL just reported that the German government gave a loan of 150 mio € to AB in order to avoid an immediate stop of all operations which would have been required otherwise (don't forget that we are in the middle of holiday season and no one is interested in lots of stranded families). This money can help AB to fly for about another 3 months. Additionally, the German government expressed hope that LH is able to take over some parts of AB.
Lets wait and see what happens.
German news magazine DER SPIEGEL just reported that the German government gave a loan of 150 mio € to AB in order to avoid an immediate stop of all operations which would have been required otherwise (don't forget that we are in the middle of holiday season and no one is interested in lots of stranded families). This money can help AB to fly for about another 3 months. Additionally, the German government expressed hope that LH is able to take over some parts of AB.
Lets wait and see what happens.
Aug 15, 2017, 6:42 am
#12
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
Because the carrier is not financially viable and oneworld doesn't really need AB. Sure, it makes a few connections and routes within Europe a little easier on the alliance but overall it is an overlap, not a unique set of routes or airports.
Also, buying an airline that lost more than a billion dollars the past couple years doesn't sound like a particularly smart investment. It'll be sold off for pieces.
Also, buying an airline that lost more than a billion dollars the past couple years doesn't sound like a particularly smart investment. It'll be sold off for pieces.
Aug 15, 2017, 6:48 am
#13
Join Date: May 2012
Location: Munich, Algarve, Sussex or S.F Bay Area
Programs: Mucci, BA Gold, A3*Gold, AA Plat, HH Gold, IHG Plat Amb, Marriott Plat
Posts: 4,158
It seems that the procedure applied for, is permitting AB to continue to operate and find a solution in a defined period of time. Usually, the court would appoint an external insovency expert to supervise this process, but AB applies to do it themselves.
I'm not a specialist in german insolvency law, but AFAIK this procedure is requiring certain preconditions to be met. A court will decide.
Interestingly, they filed insolvency in Germany, although they are a UK registered firm ...???
I'm not a specialist in german insolvency law, but AFAIK this procedure is requiring certain preconditions to be met. A court will decide.
Interestingly, they filed insolvency in Germany, although they are a UK registered firm ...???
Aug 15, 2017, 6:50 am
#14
Join Date: Jan 2012
Location: Koala Lemur
Programs: SK EBD LTG (*G)
Posts: 2,445
I agree with the investors being unwilling to go after a money hole. I disagree though that it adds little to the alliance. Perhaps just for my locations (CPH-TXL-WAW, all three *A hubs) removing AB essentially means I no longer fly OW. Perhaps I need it once a year for an odd long haul. And we loose OW connections to many small German airports.
Finally, the amount of BA posters here about earning and burning indicates that BA does not cover a visible part of the market.
Finally, the amount of BA posters here about earning and burning indicates that BA does not cover a visible part of the market.
Aug 15, 2017, 6:51 am
#15
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,694
Does BA or QR even work with airberlin? Are there are even any codeshares on each others' flights?
AB may be in oneworld, but that doesn't appear to mean much to BA or QR. AB is not part of the oneworld transatlantic joint venture, for example.
I honestly don't think BA or QR would even notice if AB disappeared.
AB may be in oneworld, but that doesn't appear to mean much to BA or QR. AB is not part of the oneworld transatlantic joint venture, for example.
I honestly don't think BA or QR would even notice if AB disappeared.