Air Berlin files for insolvency

marno21

Another airline in trouble..

https://www.rte.ie/news/business/2017/0815/897623-germanys-second-biggest-airline-files-for/

Flights to continue as is, and bookings still available as normal after Government provide €150m loan, guaranteeing 3 months of further service whilst negotiations take place.

L1011

Severely screwed over by the BER issues, stopping them from even trying to become a proper network carrier due to capacity issues; poor management and the usual Etihad Equity Alliance touch of death just added to that.

flutered

then the arguement that the gov could not help aer lingus some years ago was false

CoisFharraige

flutered wrote: »

then the arguement that the gov could not help aer lingus some years ago was false

Ah sure Bertie ran out of money under the mattress Angela has plenty in her dressers.

Mebuntu

flutered wrote: »

then the arguement that the gov could not help aer lingus some years ago was false

Ah, come on, now, sure everybody knows that the Germans (and the French) wouldn't be standing idly by and allowing those pesky EU Rules and Regulations to stand in their way.

LeChienMefiant

Statement from Ryanair:

RYANAIR LODGES COMPLAINTS WITH GERMAN AND EU COMPETITION AUTHORITIES TO BLOCK LUFTHANSA TAKE OVER OF AIR BERLIN

Ryanair has today (15 Aug) lodged competition complaints with the German Bundeskartellamt and the European Commission regarding the obvious conspiracy playing out in Germany between the German Government, Lufthansa and Air Berlin to carve up Air Berlin's assets, while excluding major competitors and ignoring both EU competition and State Aid rules. Given the fact that the German Government is centrally involved in these manoeuvres, the Bundeskartellamt is likely to struggle to get out of bed. On this basis, and bearing in mind the scale of the market shares and the European implications involved, it is all the more important that the European Commission takes immediate and decisive action.

This manufactured insolvency is clearly being set up to allow Lufthansa to take over a debt-free Air Berlin which will be in breach of all known German and EU competition rules.

Now even the German Government is supporting this Lufthansa-led monopoly with €150m of State Aid so that Lufthansa can acquire Air Berlin and drive domestic air fares in Germany even higher than they already are. German customers / visitors will suffer higher air fares to pay for this Lufthansa monopoly.

ENDS

For further information
please contact:
Robin Kiely Piaras Kelly
Ryanair DAC Edelman Ireland
Tel: +353-1-9451949 Tel: +353-1-6789333
press@ryanair.com ryanair@edelman.com

ct5amr2ig1nfhp

Are the government allowed to inject 150 million? Is that not state aid?

redcup342

Brodie Tiny Cookout wrote: »

Are the government allowed to inject 150 million? Is that not state aid?

I'd say it's probably 1499999.99 on the Documentation.

You don't need to notify the commission if its under 150 million:

http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1404295693570&uri=CELEX:32014R0651

This Regulation shall not apply to:
(a)
schemes under Sections 1 (with the exception of Article 15), 2, 3, 4, 7 (with the exception of Article 44), and 10 of Chapter III of this Regulation, if the average annual State aid budget exceeds EUR 150 million, from six months after their entry into force. The Commission may decide that this Regulation shall continue to apply for a longer period to any of these aid schemes after having assessed the relevant evaluation plan notified by the Member State to the Commission, within 20 working days from the scheme's entry into force;

If it is classified as aid then within the guidelines its fine, if it's more than that as long as it's within market rules it's also fine (i.e. they charge interest and the market would have loaned the money anyway) as seen in a recent case with various Dutch Football Clubs:

http://europa.eu/rapid/press-release_IP-16-2402_en.htm

The Commission found that four clubs (FC Den Bosch, MVV Maastricht, NEC Nijmegen and Willem II, Tilburg) received aid but that the support complied with EU State aid rules. A land transaction concerning PSV Eindhoven involved no aid as it took place on market terms.

Ryanair free publicity stunt, they know full well the Germans wouldn't put themselves in that position.

KCAccidental

The Estonian national airline will fold following a decision by the European Commission that funding given to the company by the Estonian government was not in line with EU regulations. The company, founded in 1991, does not have the funds to pay back the state and will declare bankruptcy.

The Commission began an investigation into Estonian state aid to the company in 2013, with Estonian authorities waiting for a decision ever since.

Today, on November 7, the Commission ruled that the around 90 million euros given by the Estonian government to the company, gave the company an competitive advantage over others. This means the government must demand the full amount, plus interest, back from Estonian Air. The state had also earmarked a further 40 million euros, which would have been given to Estonian Air in case of a positive decision. That money will now go to the Nordic Aviation Group.

"At 0500 GMT... after 66 years of almost continuous operation Malev will no longer take off," it said.
It came after the European Commission ordered Malev to repay various forms of state aid received from 2007 to 2010.
The sums involved amounted to 38 billion forints (130m euros; $171m; £108m), a sum equal to its entire 2010 revenue.
"Despite its best interests the owner can no longer provide financial resources for the operation of the airline in the wake of the condemning decision of the European Commission," an airline statement said.

one rule for one, eh?

L1011

KCAccidental wrote: »

one rule for one, eh?

Those followed complaints

Ryanair has made such a complaint.

Tenger

flutered wrote: »

then the arguement that the gov could not help aer lingus some years ago was false

When was this exactly?
2010?, 2007? Or 2003?
Those were the 3 EI cutbacks/cost restructurings that I can recall. I think all happened to prevent the airline going into bankruptcy.
So there isnt a direct comparison to the '3 month loan' being given to Air Berlin in this case.
If I remember correctly state aid was given in 1995's Cahill Plan.

goingnowhere

People have short memories, Ryanair came very close to the wall in its early days and Aer Lingus ended up sizing it up as a acquisition.

Air Berlin got too big too quickly, combined with a horrible main base of TXL in Berlin it was never going to be able to challenge the LH machine which owns basically every airline around it. Had it got BER it might all be different.

TXL C gate, business class passengers on long haul walking 100-150m in the pouring rain to climb up into a A330 isn't going to earn you custom

Pity the heart shaped chocolates were a nice touch...

LeChienMefiant

goingnowhere wrote: »

People have short memories, Ryanair came very close to the wall in its early days and Aer Lingus ended up sizing it up as a acquisition.

I don't see the relevance. Did they receive state aid?

L1011

LeChienMefiant wrote: »

I don't see the relevance. Did they receive state aid?

They were granted route authorities stripped from Aer Lingus in the hope that it'd save them (it did). So not financial state aid but still political interference.

LeChienMefiant

L1011 wrote: »

They were granted route authorities stripped from Aer Lingus in the hope that it'd save them (it did). So not financial state aid but still political interference.

I still don't see the relevance. Sounds like a removal of state aid from EI to open up competition. "Route authorities" sound like something from the bad old days.

L1011

LeChienMefiant wrote: »

I still don't see the relevance. Sounds like a removal of state aid from EI to open up competition. "Route authorities" sound like something from the bad old days.

It *was* the bad old days. Route authorities were granted generally to the first airline to ask for them, worldwide. Ryanair had a few but were floundering.

Competition would have been granting both route authorities for the same route; not stripping existing ones. Took the EU to impose competition in the airline sector on us (and the UK)

A319er

I see aercap retrieved their 330 yesterday , stored ZRH , with today's Captain strike and recent cancellation of most long haul routes I feel this may be the end ,
Feel sorry for the general staff and customers I wonder if or when Aercap will retrieve their other 11 330 aircraft.

Odd move by Captains to cause over 100 cancellations today to an already beleaguered company.

Locker10a

Easyjet supposedly sniffing around

munchkin_utd

A319er wrote: »

I see aercap retrieved their 330 yesterday , stored ZRH , with today's Captain strike and recent cancellation of most long haul routes I feel this may be the end ,
Feel sorry for the general staff and customers I wonder if or when Aercap will retrieve their other 11 330 aircraft.

Odd move by Captains to cause over 100 cancellations today to an already beleaguered company.

according to reports in Germany they've already asked for them back and this is supposedly the reason for the mass cancellations of long haul routes

http://www.aerotelegraph.com/leasingfirma-laesst-offenbar-air-berlin-fallen

and in another article, its mused that the current "problems" with Ryanair on rostering is Ryanair making sure that they are in a position to be able to step into the breech should air berlin be grounded, after which all slots will be given immediately to airlines who have staff and planes ready to continue operations.
https://www.welt.de/newsticker/dpa_nt/infoline_nt/wirtschaft_nt/article168741456/Bereitet-sich-Ryanair-auf-Stillstand-bei-Air-Berlin-vor.html

A319er

Aer Cap has removed all 12 A330 as of today , last 5 cease flying 15oct
Lots of stranded passengers in USA after that !

duskyjoe

Very sad to see its demise. Aer Cap will be hard pressed to re lease those a330s with the not so popular thirstier P&W units. Can't see LH taking them over? Think the airframes are pretty well on. Writing was on the wall for a while for AB.

murphaph

Lufthansa will use 747s between Berlin Tegel and Frankfurt from November due to soaring demand as nobody is booking with AB anymore.

VG31

murphaph wrote: »

Lufthansa will use 747s between Berlin Tegel and Frankfurt from November due to soaring demand as nobody is booking with AB anymore.

Lufthansa are also restarting JFK flights from TXL. Germania are expanding quickly at TXL as well.

munchkin_utd

duskyjoe wrote: »

Very sad to see its demise. Aer Cap will be hard pressed to re lease those a330s with the not so popular thirstier P&W units. Can't see LH taking them over? Think the airframes are pretty well on. Writing was on the wall for a while for AB.

maybe not !

Some of the Air Berlin planes have already found a new home. Malaysia Airlines on Wednesday said it was planning to lease six second-hand A330 planes from AerCap (AER.N), with local media reporting CEO Peter Bellew as saying the planes were coming from Air Berlin.

http://www.reuters.com/article/us-air-berlin-lufthansa-routes/lufthansa-adds-more-long-haul-routes-after-air-berlin-insolvency-idUSKCN1C21NM

Cookiemunster

6 Air Berlin planes on the ground in Shannon. I don't have the best vantage point to make out more than tails, but at least 2 A330s.

robyntmorton

Cookiemunster wrote: »

6 Air Berlin planes on the ground in Shannon. I don't have the best vantage point to make out more than tails, but at least 2 A330s.

Are they the 6 above for Malaysia going in for servicing and painting?

munchkin_utd

It looks like the Airline will cease flying by the end of this month

Any Air berlin planes flying for Eurowings will continue flying beyond that until the competition authority approves any Lufthansa takeover.

separately, Easyjet arent as interested as they previously were thanks to the slots at Gatwick and expansion due to Monarchs demise.
http://www.reuters.com/article/us-air-berlin-lufthansa/auf-wiedersehen-air-berlin-flights-to-cease-this-month-idUSKBN1CE198

murphaph

So AB6210 last night from Munich to Berlin Tegel was Air Berlin's last flight. The aircraft flew a heart shaped loop over Berlin before landing to a double water canon salute.

Gaoth Laidir

Captain Joe's tribute to his employer.

https://www.youtube.com/watch?v=EkuwhYP7y2g

marno21

Easyjet to take over 25 planes and slots at TXL : http://fortune.com/2017/10/28/easyjet-air-berlin-bankrupt/

MOL must be sickened with the unfortunate timing.

marno21

murphaph wrote: »

So AB6210 last night from Munich to Berlin Tegel was Air Berlin's last flight. The aircraft flew a heart shaped loop over Berlin before landing to a double water canon salute.

Callsign BER4EVR "Air Berlin Forever".

No tower flyby this time around but they did get their double water canon salute.