Economy

Etihad Airways says can not bail out Air Berlin

Etihad Airways says can not bail out Air Berlin”

In its own statement, Lufthansa verified that it is in negotiations to take over portions of Air Berlin Group.

Germany's giant services sector union Verdi responded with dismay to Air Berlin's surprise announcement.

The move by the struggling airline forced the German government to step in to provide it with a temporary credit of 150 million euros (176 million dollars) to help it continue operating.

"We assume that Air Berlin's airport slots. can be marketed and sold and we assume that the loan can be paid back", she told journalists during a news conference.

The Gulf-based company said the development was "extremely disappointing" especially as it had provided extensive support to Air Berlin over the last six years, notably with a €250m (£227m) cash injection in April this year. Etihad provided it with €250 million in April but chose to pull further funding following a review of its European investments.

"Under these circumstances, as a minority shareholder, Etihad can not offer funding that would further increase our financial exposure".

More news: Tottenham make new bid for Fulham fullback Ryan Sessegnon

"The board of directors of Air Berlin PLC has, after close evaluation, determined that Air Berlin PLC has no longer a positive continuation prognosis", the airline said, adding that it had filed for insolvency with the court of Berlin- Charlottenburg.

News agency Bloomberg estimates that Air Berlin has burnt through nearly €2 billion in six year.

"However, Air Berlin's business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions", Etihad said in a statement on Tuesday.

"We will support Air Berlin's management during these hard times", the statement added.

"The goal has been to keep out Ryanair", the person said in reference to negotiations.

Air Berlin's decision comes three and a half months after another Etihad-backed European carrier, Alitalia, entered its second round of bankruptcy protection in a decade.



Like this

loading...
loading...

Latest


15 August 2017
Hundreds of IoT smart locks bricked by bad update, leaving customers stranded
Sadly for the users of the RemoteLock 6i , used by many due to an Airbnb partnership, the update issue has caused chaos. A botched wireless update for LockState 6000i locks has left them inoperable, and customers without an immediate fix.

15 August 2017
Retail Sales Increased 0.6% in July, Up 4.2% YOY
Sales of motor vehicles and building materials both increased by 1.2% month-on-month to reach $100.1bn and $31.44bn, respectively. Nonstore retailer sales are up 11.5% year-over-year as online retailers continue to grow their market share.

15 August 2017
Rio Tinto plc (LON:RIO) Insider Buys 11 Shares of Stock
Rio Tinto plc (NYSE:RIO) recently saw its volume around 5.58 million shares and on average it trades 3.28 million shares a day. BidaskClub downgraded shares of Rio Tinto PLC from a "strong-buy" rating to a "buy" rating in a report on Tuesday, July 25th.

15 August 2017
Jury sides with Taylor Swift in groping case, awards her symbolic $1
Instead, he said that he had simply touched her arm and ribs while "jostling" for the photo. "This was not jostling", Swift said. Swift remained aloof during the trial proceedings but broke her silence in a statement to Us Weekly following the result.

15 August 2017
Bernard Kenny, pensioner who came to aid of Jo Cox, dies
His son said: "It was a very special moment when that was announced". "And he never spoke about it to the media". Labour MP, Yvette Cooper added: "This is deeply sad news - Bernard Kenny was a true hero, a very fearless man.

15 August 2017
Facebook Marketplace now available in 17 European countries
However, the company said 18 million items were posted on Marketplace in the US alone in May and that this figure continues to rise.

15 August 2017
Trump Retweets Cartoon Image Of Trump Train Rolling Over CNN
But Acosta wanted to know if the media could ask more questions. 'Doesn't bother me at all, ' Trump said, smiling. "We did not. He later said the man, who was assaulted by Trump supporters in the crowd, might have deserved to get roughed up.

15 August 2017
United Kingdom parliament's 'Big Ben' bell to fall silent for four years
Officials said the bell would stop ringing from next week in order to ensure the safety of workers completing the renovation. The four dials will be re-glazed, the cast-iron framework repaired and the hands will be removed and refurbished.

15 August 2017
Inquiry into ticket touting criticises International Olympic Committee and Pat Hickey
This agreement gives THG ticket reselling rights to the 2018, 2020, 2022, 2024 and 2026 Olympic and Winter Olympic Games. Mr Evans's THG said it told the Moran inquiry it could not give information because of ongoing "legal issues in Brazil".

15 August 2017
Break Up Alert! Sidharth Malhotra and Alia Bhatt call it quit again?
The source further added, "Jacqueline and the film-makers are now trying to retain the original version of the song". If sources re to be believed, Sidharth and Alia have parted their ways and made a decision to mutually split.