BERLIN, Aug. 15 (Xinhua) -- Germany's second-biggest airline Air Berlin filed for insolvency on Tuesday after its biggest investor announced to withdraw support.
As the major shareholder Abu Dhabi-based Etihad Airways declared that no further financial support would be available, it could be concluded that there is no longer a positive forecast for Air Berlin, according to a statement by the airline.
Against this background, Air Berlin said that it "has today filed to commence insolvency proceedings under self-administration at the local district court of Berlin-Charlottenburg, in order to continue with the restructuring process that is already underway."
Meanwhile, the German government has said to step in and plans to provide Air Berlin with a temporary credit of 150 million euros (177 million U.S. dollars), enabling the company to continue running.
The beleaguered company said that the support of German government means that all flights will continue as planned and that the flight schedule and bookings remain valid.
"Negotiations with Lufthansa and other partners regarding the acquisition of business units of Air Berlin are far advanced and highly promising. These negotiations may be finalised shortly," the statement added.
Given the situation, CEO of Air Berlin Thomas Winkelmann said that "we are working tirelessly to achieve the best possible outcome for the company, our customers and employees."
Over the years, Air Berlin has accumulated a mountain of debt worth 1.2 billion euros.
The carrier was sustained by its main shareholder Etihad which owns 29.2 percent of the company's stock since 2011. The Gulf state carrier has originally promised to continue supporting Air Berlin financially, but appears to have lost its nerves in light of the latter's deteriorating situation.
