Prior to their annual General meeting on Wednesday may keep Air Berlin, just in the air and in urgent need of a new Savior. But who does the indebted Airline?
In the past week, gathered the global aviation industry to its annual summit, the annual General meeting of the line air travel organisation IATA, this time held in the Mexican seaside resort of Cancun. The events were emblematic of a dramatic week at the second largest German airline Air Berlin.
Thomas Winkelmann, one of the most important Manager in the Lufthansa group and Air Berlin in-chief, was not only traveled to Mexico; he had to be home by a firefighter. Lufthansa-Chef Carsten Spohr was in Cancún showed, demonstratively left. Clearly Lufthansa have interest in Air Berlin, but a shareholder Etihad (the Airline of Abu Dhabi has, since 2011, a total of 29 percent of Air Berlin and has invested in that time about 1.5 billion euros in the ailing daughter) had to shoulder the debts of around one billion Euro, before thinking about a Takeover.
With Etihad as a Partner, everything will be fine. It was thought…. Nothing will.
Golf-Airlines under pressure
A shockingly weak presence showed in Cancún, the so far dominant Airlines from the Persian Gulf, which in turn reflects the difficult situation you are in currently. The greatly dilapidated in the price of Oil, the Gulf States suffer from a massive drop in revenue, their inflated Airlines at the same time to the self-created over-capacity.
Emirates boss Sir Tim Clark, always prominently present, was not come. Akbar Al Baker, the powerful Boss of Qatar Airways, had to hastily depart in a private jet after him over night which, after the Blockade of Saudi Arabia’s break-out at the end of the Qatar-crisis. And the former Boss of Etihad group, and the inventor of the now Etihad self-threatening, and a failed investment strategy, James Hogan, was missing, of course, to his recent dismissal.
Etihad in front of an uncertain future
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The CEO of Etihad Airways wanted to stay, however, prefer to be invisible. “I should not come in the Lobby,” explained the Swiss Peter Baumgartner, than journalists responded that he would sooner close the exchange. “Everything is difficult at the Moment, I can’t say anything”, he had just elicit. Currently a successor for James Hogan sought, and, possibly, stands for the ruling family in Abu Dhabi as Etihad owns not only the adventurous investment strategy, but Etihad overall, as a stand-alone company for Disposition. This also makes it increasingly unlikely that Etihad sunk even more money into its shareholding, Air Berlin. And, although the Arabs in April the insured in writing that they would comply with their participation resulting financial obligations until at least October 2018.
On Thursday of last week – hardly the Airline were left-Chefs from Mexico – became the location for Air Berlin, once again, dramatic: Etihad said the planned carve-out of the holiday flyer, NIKI, Air Berlin and the long-awaited merger of the tourism business with TUIfly to a new company in the short term. Thus, one of the key pillars of the carefully elaborated restructuring plan for Air Berlin was obsolete.
State aid as a last resort?
Even worse: in May, Air Berlin will have to pay the EUR 300 million to Etihad back that were invested for the Acquisition of NIKI by the Arabs already. Now it was clear: Air Berlin an economic crash landing is imminent, if not immediately, a new Savior. The preceding question by Thomas Winkelmann for state guarantees by North Rhine-Westphalia, and Berlin are a “Mayday”radio call from the Central office of the company. “The Situation of Air Berlin is precarious, else a request for the guarantee would not be made,” said Federal Economics Minister Brigitte Zypries on Tuesday in Ludwigshafen, is the location.
And on Wednesday (14.06.2017), the British PLC (Public Limited Company) – run company at the annual General meeting of its shareholders in London. Had on the paper in the last few years, never joy: In the past nine years, Air Berlin flew only once, with a consolidated surplus. After the Air Berlin share price peaked in may 2007 with 20,28 euros at its peak, bobs up and down their value since October 2015 at under a Euro, with a few outliers to Euro 1.09 in may, fueled by takeover speculation.
On the floor: Two Air Berlin in Berlin-Tegel.
Passengers are suffering
The desolate image of the flight operations of Air Berlin releases currently: delays, flight cancellations and the use of leased aircraft fits annoy dubious Airlines such as Air Mistral or the Italian Post office and unsettle passengers. The reason is the internal displacement of aircraft and crews are. Air Berlin currently operates 38 your officially 139 machines for Lufthansa. Because of the strict contracts with high penalties in case of irregularities, scheduled operations are a high priority. Their dark sides get the Air Berlin-to feel their own flights and their passengers. The spin-off of 35 Jets in the Etihad and TUIfly scheduled holiday airline delivery already, now the rest of the procedure is open.
Legacy of the past
Thomas Winkelmann leaves no doubt: “We must find 2017 a new Partner,” he said of the time before the for the new NIKI, what makes the situation even more precarious. It is clear that Air Berlin has financially no room for more. And the fact that the Airline is disassembled currently, virtually before the eyes of all of the self carries with it the risk of a Domino effect, where the passengers lose confidence and not for Air Berlin or now remaining daughter, NIKI book.
The former CEO Joachim Hunold in 2006, operated Acquisitions of LTU and Deutsche BA, Air Berlin is neither economically nor operationally has ever coped really, now call their late tribute. Industry experts suggest that Air Berlin can still make it to September, it could be in the less traffic-intensive season of the year, but extremely narrow, or when a new Partner comes on Board, or a sale, for example, the Lufthansa.