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Air Berlin filing for bankruptcy?

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Air Berlin filing for bankruptcy?

Old 15th Aug 2017, 11:31
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Air Berlin filing for bankruptcy?

According to the Deutsche Welle
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Old 15th Aug 2017, 11:32
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Confirmed by AB and LH. Etihad halted it's payments for AB. Flights continue. Fed government is funding some bridging. LH is said to be taking over parts of AB soon.
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Old 15th Aug 2017, 11:36
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Yep, German Government has opened a 150 Mio Euro Interim credit line to ensure current operations and orderly wind down. Germany has something similar to US chapter 11 in ist insolvency law.
Looks as if the AB days are numbered, seems to me to be a better invest than Alitalia
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Old 15th Aug 2017, 11:41
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I guess I can say goodbye to the various compensations they still owe me...
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Old 15th Aug 2017, 12:38
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As reported on the BBC just now.

Some of their operations to be merged with LH?.

Air Berlin files for insolvency but flights continue - BBC News

Either way, AB's days seem to be numbered.

How long before AZ goes the same way?.
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Old 15th Aug 2017, 12:46
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Not surprised really, they had too diverse a fleet and network. You'd always see just about every variant of every type at the stand in PMI.
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Old 15th Aug 2017, 12:50
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Originally Posted by atakacs View Post
I guess I can say goodbye to the various compensations they still owe me...

If the compensations are due under a German employment contract, you have a very good chance. Get yourself a German attorney asap who will file the Claims. Salaries are 1st in line under German law!
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Old 15th Aug 2017, 12:52
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Originally Posted by fendant View Post
If the compensations are due under a German employment contract, you have a very good chance. Get yourself a German attorney asap who will file the Claims. Salaries are 1st in line under German law!
maybe he means EU compo for delays?
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Old 15th Aug 2017, 14:59
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150 million won't last long. Needs to be shut down sorry
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Old 15th Aug 2017, 15:13
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The 150M aren't supposed to last very long. Thery're meant as a bridge to shut down operations properly without leaving people stranded.
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Old 15th Aug 2017, 15:15
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So, i thought i better spend my earned miles in their "top bonus shop"....
Guess not....
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Old 15th Aug 2017, 15:16
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Originally Posted by AviatorDave View Post
...without leaving people stranded.
..just before the Bundestag elections in late september.
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Old 15th Aug 2017, 15:17
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Yes, this money will be burnt up just like the other millions this airline has used up.

However: there are two reasons for this state-backed loan.

Firstly, there are elections coming up. If the government was to let thousands of German holidaymakers get stranded due to one of the major airlines folding, this would come to hound them.

And secondly, there has been quite some lobbying by LH who has wetleased nearly 40 of ABs aircraft for use on their own network (some for LH, some for OS). Were AB to halt all of their flying operations, as would have been required, was German insolvency law followed strictly if there had been no such loan, this would have dealt quite a blow to LHs operation as well.

So this loan is to buy AB some time to allow closure of the ongoing negotiations between them and LH on taking over some parts of the failing company, possibly including employees. Had AB folded today, there would have been a gap usable for FR and the like and the loss of German jobs would have been inevitable (see also the previous words on the upcoming election).

IŽd expect there to be an agreement within a few days to weeks: LH will take over some profitable parts of AB, some slots may go to U2, and the rest of the airline will be scrapped possibly at the end of October.
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Old 15th Aug 2017, 17:33
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The Middle East three will be licking their chops with anticipation of qualified crew applying for employment.
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Old 15th Aug 2017, 18:38
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People have forgotten what "Low Cost Carrier" means
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Old 15th Aug 2017, 19:55
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Originally Posted by CDRW View Post
The Middle East three will be licking their chops with anticipation of qualified crew applying for employment.
Middle East 3 have pumped money and lost it in Alitalia and AB................ wonder who else will soak them of their money.
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Old 15th Aug 2017, 20:28
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German media now reports AB to be split between LH and U2...
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Old 15th Aug 2017, 20:28
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All of the ME3? Is it not rather only Etihad that went on a shopping spree, throwing train loads of money down Alitalias and Air Berlins bottomless pits?

Ryanair, in the meanwhile, has found the development much to its dissatisfaction. A complaint with the German anti-trust authority has been lodged, claiming that the present arrangement only served to allow LH to take over AB sans its debts and, therefore, was in breach of German and EU anti-trust legislation.
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Old 15th Aug 2017, 20:38
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Wonder how fast sales are going to dry up...
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Old 15th Aug 2017, 20:39
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Originally Posted by Tu.114 View Post
Ryanair, in the meanwhile, has found the development much to its dissatisfaction. A complaint with the German anti-trust authority has been lodged, claiming that the present arrangement only served to allow LH to take over AB sans its debts and, therefore, was in breach of German and EU anti-trust legislation.
It is if selective hiving off without seeking other buyers and leaving the bad bits behind.

LH will claim strategic but figure EU won't go along with that.
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