The German court appointed administrators for the now defunct AirBerlin is launching legal action against Etihad to secure some $2 billion in compensation for the collapse of the airline.
The fall of AirBerlin was brought about when Etihad had finally had enough of propping up the airline – which was almost in a permanent state of debt and losses, which kept growing.
Etihad was suffering its own economic and financial issue and decided to end it’s investmenst in loss making airlines such as Alitalia and AirBerlin. The result was the near instant collapse of the airline which damaged the German civil aviation sector for nearly a year as capacity vanished almost over night.
The administrators claims will include the breech of promises and commitments to the airline, the losses caused by unfulfillable contracts and operating daily, unpaid bills and airport costs, as well as the money owed to some employees.
Etihad will not want to – even if it could – pay the money as it is barely breaking even at present on its own turf, never mind the failed investments it made under its Equity Partners Programme.