Air Berlin Files for Bankruptcy

Old Aug 15, 17, 6:18 am
  #1  
Original Poster
 
Join Date: Mar 2007
Location: Berlin
Posts: 1,450
Air Berlin Files for Bankruptcy

Story Developing.....

https://www.bloomberg.com/news/artic...cy-proceedings
largeeyes is offline  
Old Aug 15, 17, 6:23 am
  #2  
 
Join Date: Oct 2014
Location: Germany
Programs: *G, OWS
Posts: 174
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...
frogster is offline  
Old Aug 15, 17, 6:33 am
  #3  
 
Join Date: May 2007
Location: Zurich
Programs: BA GGL, TK*G ELPL, KL P ELPL, was AB G, ex LH/LX Sen, HHonors D, SPG P
Posts: 1,339
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 ...???
swiss_global is offline  
Old Aug 15, 17, 6:33 am
  #4  
Original Poster
 
Join Date: Mar 2007
Location: Berlin
Posts: 1,450
Originally Posted by frogster View Post
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...
Appears Lufthansa and government will step in for now.....
largeeyes is offline  
Old Aug 15, 17, 6:37 am
  #5  
 
Join Date: Jun 2009
Location: London, United Kingdom
Programs: British Airways Gold
Posts: 2,540
I'm sure the Italian government will be watching closely for the support the German government gets away with giving in the context of EU rules
ajeleonard is offline  
Old Aug 15, 17, 6:39 am
  #6  
Original Poster
 
Join Date: Mar 2007
Location: Berlin
Posts: 1,450
Originally Posted by ajeleonard View Post
I'm sure the Italian government will be watching closely for the support the German government gets away with giving in the context of EU rules
This sounds rather negative on Bloomberg....

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 wont 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 AGs 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.
largeeyes is offline  
Old Aug 15, 17, 7:16 am
  #7  
 
Join Date: Aug 2007
Location: Germany
Programs: Miles & More, Amex
Posts: 660
Originally Posted by ajeleonard View Post
I'm sure the Italian government will be watching closely for the support the German government gets away with giving in the context of EU rules
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.
Scrooge McDuck is offline  
Old Aug 15, 17, 7:30 am
  #8  
 
Join Date: Oct 2014
Location: Germany
Programs: *G, OWS
Posts: 174
Originally Posted by Scrooge McDuck View Post
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.
Especially this close before an election...
Passmethesickbag likes this.
frogster is offline  
Old Aug 15, 17, 7:38 am
  #9  
 
Join Date: Jan 2009
Posts: 91
Why doesn IAG or Qatar buy them to keep them in the OW fold?
NathanM is offline  
Old Aug 15, 17, 7:41 am
  #10  
 
Join Date: Jan 2000
Programs: Latinpass Million Miler. BA Gold.
Posts: 3,531
Originally Posted by NathanM View Post
Why doesn IAG or Qatar buy them to keep them in the OW fold?
Because they don't want to throw good money after bad.....
BlackBerryAddict is offline  
Old Aug 15, 17, 7:41 am
  #11  
 
Join Date: Jan 2003
Location: London, UK
Posts: 4,655
Originally Posted by NathanM View Post
Why doesn IAG or Qatar buy them to keep them in the OW fold?
Perhaps because they're not as fond of burning money as Etihad were?
Dave_C is offline  
Old Aug 15, 17, 7:42 am
  #12  
A FlyerTalk Posting Legend
 
Join Date: Apr 2001
Location: NYC
Posts: 69,156
Originally Posted by NathanM View Post
Why doesn IAG or Qatar buy them to keep them in the OW fold?
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.
sbm12 is offline  
Old Aug 15, 17, 7:48 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: 2,882
Originally Posted by swiss_global View Post
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 ...???
Air Berlin PLC & Co. KG is a German registered entity which is like a partnership between the UK PLC and other German participants. The PLC part takes the liability within the partnership.
Tafflyer is offline  
Old Aug 15, 17, 7:50 am
  #14  
 
Join Date: Jan 2012
Location: Kuala Lumpur
Programs: SK EBD (*G)
Posts: 2,080
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.
SK2751 is offline  
Old Aug 15, 17, 7:51 am
  #15  
FlyerTalk Evangelist
 
Join Date: Mar 2008
Location: Netherlands
Programs: Gold: A3, KL Silver: AZ, BA
Posts: 24,202
Originally Posted by NathanM View Post
Why doesn IAG or Qatar buy them to keep them in the OW fold?
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.
irishguy28 is offline  

Thread Tools
Search this Thread