Air Berlin, Germany’s second-largest airline has filed for bankruptcy, following the withdrawal of financial support from its main stakeholder Etihad.
The airline, which has accrued much debt for nearly a decade, announced a loss of over 700 million euros in 2016.
Flights will keep on running thanks to a provisional loan of 150m euros from the government in Germany.
Lufthansa At Negotiation Table
Its major competitors, Lufthansa, are already negotiating terms to purchase some share from Air Berlin Group.
Air Berlin’s traveller’s figures remain in decline: during July, the airliner lost almost a quarter of its clients compared with the numbers they had last year.
The airline has also had issues with flight delays and cancellations, which made them lose millions of euros in dispute.
At a press conference, Germany’s Economy Minister, Brigitte Zypries, disclosed that the authorities’ emergency loan must permit flights at the airline to carry on its service for three months.
Flights at Air Berlin’s low-cost backup airline Niki are also running as usual.
Ms Zypries said talks with Air Berlin and Lufthansa are progressing fine, and a bargain through which Lufthansa will takes up shares of the bankrupt carrier would soon be reached.