Air Berlin Declares Bankruptcy – Ceases Flights

The company began the insolvency procedures in August. A temporary solution was found when the Government bailed it out by a £137 million loan which has kept the planes flying until now.

Unfortunately, these funds have now been exhausted. The final crisis began when the stakeholder owning 29% of the company, Etihad, lost its patience and withdrew the funding. In April, Etihad had injected £227 million into Air Berlin.

In a statement, he added that: “Air Berlin’s business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions.”

The company is now urging its employees to seek jobs in other companies. At the same time, the airline has started discussing with labour leaders on terms for letting people go. The company is also involved in the process of selling planes and airports slots.

Among those who are currently bidding for the company’s assets are Deutsche Lufthansa and easyJet.

A statement released by the company read: “As far as we are currently aware, flight operations under the IATA airline code AB will no longer be possible during the insolvency proceedings, at the latest from October 28th 2017.”

 

Source: breakingtravelnews.com