BREAKING: Air Berlin bankrupt. Won’t refund tickets.
Air Berlin makes tickets issued before Aug 11 non-refundable
Carrier files for administration under $1.41 billion debt load
German carrier Air Berlin will seek protection under European insolvency laws, after shareholder Etihad Airways said they would no longer financially support the airline. ABC News reports the carrier has filed for the equivalent of bankruptcy protection, carrying approximately $1.41 billion in debt.
Germany’s second largest airline, Air Berlin, is filing for bankruptcy protection after its main shareholder, Abu Dhabi-based Etihad, said it would make no more financing available following years of unsuccessful turnaround attempts.
The loss-making airline, which carries some 80,000 people a day mostly on short-haul destinations, will get a 150 million euro ($177 million) government loan to keep flights running and not leave travelers stranded during the peak summer season.
Their Arab support (Abu Dhabi) pulled the plug.
Air Berlin Files for Bankruptcy Protection After Biggest Investor Ends Support
Germany’s second-largest airline in talks to sell part of its operations to larger rival Lufthansa
German airline goes bust after Etihad pulls plug
Air Berlin will continue flying for the time being thanks to a loan of €150 million ($176 million) from the German government. That should also allow all 7,200 employees to keep their jobs while executives try to restructure or sell the company.
“Air Berlin’s business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions,” Etihad said in a statement.
“Under these circumstances, as a minority shareholder, Etihad cannot offer funding that would further increase our financial exposure.”
Lifelong retail career. Buy your tickets with a major credit card. Part of credit card protection is getting a full refund on your card if the company you buy from goes broke and you don’t get your product/service.
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