Air Berlin filing for bankruptcy?
Joined: Sep 2007
Posts: 112
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From: Switzerland
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
Looks as if the AB days are numbered, seems to me to be a better invest than Alitalia
Joined: Jan 2008
Posts: 191
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From: Ban Chiang,Thailand
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?.
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?.
Joined: Sep 2007
Posts: 112
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From: Switzerland
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!
Joined: Feb 2008
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From: UK
Joined: Feb 2009
Posts: 945
Likes: 445
From: Austria
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).
I´d 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.
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).
I´d 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.
Joined: Nov 2008
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From: Exit stage right.
Joined: Feb 2009
Posts: 945
Likes: 445
From: Austria
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.
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.
Joined: Nov 2008
Posts: 287
Likes: 7
From: Exit stage right.
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.
LH will claim strategic but figure EU won't go along with that.