Germany Air Berlin is filing for bankruptcy. They are doing so to protect the company due to its principal shareholder Abu Dhabi-based Etihad. Abu Dhabi-based Etihad announced it would no longer be taking out loans for the carrier. The reason being years of no real attempts to turn around business profits.
Air Berlin flies around eight thousand passengers a day mostly on short-haul destinations. The second largest carrier in Germany will get one-hundred and fifty euros. That number equates to around one hundred seventy-seven million American dollars. that That’t the amount in government loans to keep the airline company sending flights. Once this is in place from the government in Germany, it will not leave travelers stranded during the peak of the summer of 2017 season.
Air Berlin has been at a big loss lately
The transport Ministries and German Economy said in a statement on Tuesday that Air Berlin is at a time when travelers are in multiple intentional holiday spots daily.
The government of Germany cash loan is to last for three months after the ninety days is up. Air Berlin is uncertain at to what comes next for the airline. The government of Germany says Rival Lufthansa is the largest airline. Air Berlin union is announcing a severe blow to all of their employees. More than seven thousand will be without jobs due to the recent bankruptcy. Although the carrier is going bankrupt, their main priority is for their seven thousand employees to remain employed. The director of the union board with the carrier says the airline needs to proceed with transparency. Also, to provide the information for their loyal and hard working employees.
Economy Minister Brigitte Zypries said that the scaffold advance should give Air Berlin enough time to wrap up chats on the offer of a few operations. The carrier said that in light of Abu Dhabi-based Etihad’s choice, it concluded that there was no further positive route ahead for Air Berlin.