Etihad sued by AirBerlin administrators

Lauren Eldershaw
By Lauren Eldershaw December 17, 2018 10:13

Etihad sued by AirBerlin administrators

Air Berlin’s insolvency administrator is suing Etihad in a German court for failing to deliver on a commitment to support the failing airline for a period of 18 months. According to a statement from the Berlin district court, the administrator “is of the opinion that [Etihad] gave a binding commitment. Because it violated that commitment, it should settle all the justified claims of creditors.”

Etihad was the main shareholder in Air Berlin and had provided a comfort letter to the German airline in May 2018 committing financial backing for a period of the next 18 months. However, the airline declared insolvency in August 2017 following an announcement by Etihad that it would no longer stand by that commitment.
The suit, valued at up to $2bn, is an attempt to secure funds to pay off more than one million claimants.

Etihad has until the end of January to respond to the claims. The German court will then decide if the claims have merit.

Lauren Eldershaw
By Lauren Eldershaw December 17, 2018 10:13