August 15, 2017 – According to a release issued today by Etihad Airways, it has been informed that airberlin has filed for administration. This is despite Etihad providing EUR 250 million of additional funding to airberlin in April, as well as supporting the airline to explore strategic options for the business.
“This development is extremely disappointing for all parties, especially as Etihad has provided extensive support to airberlin for its previous liquidity challenges and restructuring efforts over the past six years,” Etihad said in an official statement.
“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.”
Etihad adds that it expects airberlin operations to continue during administration, including codeshare operations, and that it will support airberlin’s management during these difficult times.
“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,” the airline said.