ABU DHABI 18 August 2017: Abu Dhabi-based airline Etihad Airways has announced that ‘airberlin’ has filed for administration.
In an official statement, Etihad Airways said that this latest development is “extremely disappointing for all parties”, especially as the airline “has provided extensive support to airberlin for its previous liquidity challenges and restructuring efforts over the past six years.”
It added that in April this year, Etihad provided EUR 250 million of additional funding to airberlin as well as supporting the airline to explore strategic options for the business, said Wam.
“However, airberlin’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. We remain open to helping find a commercially viable solution for all parties,” the statement continued.
Etihad said that airberlin operations are expected to continue and that it would support airberlin’s management during administration.
“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,” it concluded.
By Rajive Singh