Air Berlin files for insolvency as Etihad pulls funding plug

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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 06 Nov 2017, 15:39

Air Berlin is expected by the German government to repay in full the €150 million loan it received from state-owned development bank KfW IPEX-Bank.

With which money?
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 09 Nov 2017, 15:26

Air Berlin faces a lawsuit by its pilots' union over a breach of collective bargaining agreements, regarding the plan by the carrier to transfer 13 Airbus jets and pilots to Eurowings.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 09 Nov 2017, 15:37

European Commission says antitrust regulators will rule by 12 December 2017 on whether to allow easyJet to acquire parts of defunct Air Berlin. A decision on Lufthansa is expected on 07 December 2017.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 15 Nov 2017, 23:40

Air Berlin former charter crew, via their union, came to a collective agreement preventing the dismissal of 150 employees at TUIfly (Germany).
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 27 Nov 2017, 17:55

Air Berlin won a court case against Vereinigung Cockpit (the pilots union), allowing LGW to operate A320s for Eurowings.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 30 Nov 2017, 17:28

Lufthansa CEO Carsten Spohr was meeting with EU Competition Commissioner Margrethe Vestager on 29 November 2017 to discuss anti-trust concerns over the carrier’s acquisition of Air Berlin assets.

The results of this meeting are still unknown.

In other news, NIKI founder Niki Lauda and Thomas Cook (UK) will make another offer for the Austrian airline if the EU Commission does not approve its takeover by Lufthansa.

NIKI took delivery of one A320-200, serial 4329, leased from CDB Aviation (Ireland). Carrier also took delivery of one A320-200, serial 3908, leased from GECAS (US) — both aircraft ex-Air Berlin.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by Ansett » 30 Nov 2017, 18:54

To me it's clear that LH (or LH Group) has a dominant position in its home market and a number of neighbouring markets. The EU should not allow LH to go ahead with its plans, but I doubt they will stop LH.

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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 05 Dec 2017, 22:21

EasyJet is set to win unconditional EU antitrust approval to buy parts of failed Air Berlin, including some of its operations at Berlin Tegel, for around EUR40 million. It will also take on leases for up to 25 A320s, and about 1,000 pilots and cabin crew.

Lufthansa offered concessions to try to allay competition concerns about its plan to buy Air Berlin assets, EU antitrust regulators said. EC extended its deadline for a decision on the deal from 07 till 21 December 2017. This might indicate that there are some difficulties...
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 11 Dec 2017, 20:37

sn26567 wrote:
05 Dec 2017, 22:21
Lufthansa offered concessions to try to allay competition concerns about its plan to buy Air Berlin assets, EU antitrust regulators said. EC extended its deadline for a decision on the deal from 07 till 21 December 2017. This might indicate that there are some difficulties...
The European Commission is investigating evidence of illegal agreements and price erosion regarding the takeover of Air Berlin by Lufthansa.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by Passenger » 13 Dec 2017, 13:25

European Commission approves proposed acquisition of parts of Air Berlin by easyJet

EN:
http://europa.eu/rapid/press-release_IP-17-5244_en.htm
FR:
http://europa.eu/rapid/press-release_IP-17-5244_fr.htm
DE:
http://europa.eu/rapid/press-release_IP-17-5244_de.htm

European Commission - Press release 12 December 2017

The European Commission has approved unconditionally under the EU Merger Regulation the proposed acquisition of certain assets of Air Berlin by easyJet. The Commission concluded that the transaction would not adversely affect competition in the EU Single Market.

Commissioner Margrethe Vestager, in charge of competition policy, said: "Our job is to make sure that airline takeovers do not result in less competition - that would mean higher flight fares and less choice for consumers. EasyJet's plans to buy certain Air Berlin assets will not reduce competition and we have approved it today. Our decision enables easyJet to grow its presence at Berlin airports and start competing on new routes to the benefit of consumers".

Following several years of financial difficulties, Air Berlin, Germany's second largest airline, filed for insolvency in August 2017, resulting in the sale of its assets. In the following weeks, Air Berlin grounded its operations, and left the market. EasyJet proposed to acquire certain assets and rights held by Air Berlin as part of its passenger transport operations at Berlin Tegel airport, including slots at Berlin Tegel airport and at some destination airports. Slots are the permission to land and take-off at a specific date and time at an airport.

The Commission examined the impact of the proposed transaction, looking in particular at whether the slot portfolio to be acquired by easyJet in Berlin Tegel, and at destination airports, would allow easyJet to shut out competitors from the market for passenger air travel to and from Berlin. Indeed, control over slot portfolios at congested airports can result in higher barriers to entry for airlines wanting to operate to and from those airports, which in turn could result in higher fares for passengers.

The Commission's investigation found that:
the increase in the slot portfolio of easyJet at the congested airports, and in Berlin in particular, was unlikely to have a negative effect on passengers, and
easyJet will continue to face strong competition from large carriers like Lufthansa and Ryanair on routes from and to Berlin.

The Commission therefore concluded that the proposed acquisition would raise no competition concerns in any of the relevant markets.

Background to the Air Berlin sale process

Air Berlin, Germany's second largest airline, filed for insolvency on 15 August 2017. Air Berlin's insolvency administrator then launched a sales process for Air Berlin assets with a deadline to submit bids by 15 September 2017.

Air Berlin's insolvency administrator received a number of bids for various Air Berlin assets. On 12 October 2017, Air Berlin announced that it signed an agreement with Lufthansa for a large part of Air Berlin's assets, i.e. the airline NIKI and the Luftfahrtgesellschaft Walter. This transaction was notified to the Commission on 31 October 2017 and Lufthansa submitted remedies on 30 November 2017. The Commission's investigation is ongoing and the provisional deadline for the Commission to take a decision under EU merger rules in the first investigation phase is 21 December 2017.

Separately, on 27 October 2017, Air Berlin announced the signing of an agreement with easyJet for certain other Air Berlin assets. This transaction was notified to the Commission on 7 November 2017 and was approved unconditionally today.

Companies and products

easyJet is an airline based in the United Kingdom that operates in the European short-haul aviation market and is focussed primarily in Western and Northern Europe. It operates domestic and international scheduled services over 800 routes in more than 30 countries to and from 132 airports. It also operates three licensed airlines within the EU and Switzerland.

The Air Berlin assets that easyJet proposes to acquire consist of assets and rights held by Air Berlin for part of its airline operations at Berlin Tegel airport, including slots at Berlin Tegel airport and at some destination airports, overnight parking stands associated with the acquired slots, Air Berlin's customer bookings in respect of the relevant operations, historic data relating to those assets, and certain aircraft furnishings and related equipment.

Merger control rules and procedures

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede competition in the European Economic Area or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

More information will be available on the competition website, in the Commission's public case register under the case number M.8672.

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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 14 Dec 2017, 00:09

Lufthansa scrapped plans to buy NIKI (Austria) after being told by the EU that it could not allow the deal on competition grounds. Lufthansa said it still planned to buy LGW (Germany) and is submitting a revised proposal, including foregoing slots. Lufthansa would apply for any Niki slots that become free in the event of an insolvency.
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Post by sn26567 » 20 Dec 2017, 20:43

sn26567 wrote:
06 Nov 2017, 15:39
Air Berlin is expected by the German government to repay in full the €150 million loan it received from state-owned development bank KfW IPEX-Bank.

With which money?
Air Berlin paid back around €42 million of its €150 million government loan, however, total repayment is no longer expected.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by Passenger » 21 Dec 2017, 20:49

"European Commission approves Lufthansa’s acquisition of Air Berlin subsidiary LGW, to be integrated into Eurowings"
http://www.aviation24.be/airlines/lufth ... eurowings/

Press release European Commission:
http://europa.eu/rapid/press-release_IP-17-5402_en.htm

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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 12 Jan 2018, 20:56

Air Berlin has now paid back €62.5 million, or a little more than 40% of its €150 million government loan.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 23 Jan 2018, 14:51

New development: Air Berlin creditors reportedly threaten up to €2 billion lawsuit against Etihad.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 24 Jan 2018, 22:27

Air Berlin has debts of up to €4.4 billion, with the government (= the taxpayer) expecting losses of around €200 million, according to a new report from the airline’s insolvency administrators.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 06 Mar 2018, 20:51

Air Berlin creditors decided to sue former parent Etihad for damages over the insolvency of the German carrier. The creditors reportedly asked the administrator to find a firm to finance the planned litigation, which could result in more than more than €1 billion in claims.
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 27 Apr 2018, 12:35

LOT Polish Airlines brought an action to the European Court of Justice for annulment of a decision of the European Commission authorizing the takeover of Air Berlin assets by easyJet.

Wow! What's the idea?
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Re: Air Berlin files for insolvency as Etihad pulls funding plug

Post by sn26567 » 16 Aug 2018, 20:43

Belair (the affiliate of Air Berlin in Switzerland) declared bankruptcy after a potential investor cancelled talks with the carrier.
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