Deals
Air Berlin Files for Insolvency as Etihad Pulls Funding Plug
- German carrier will continue flying with help of state loans
- Lufthansa in talks to buy parts of its discount rival
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Air Berlin Plc filed for insolvency after leading shareholder Etihad Airways PJSC withdrew its financial support, marking the second failure of a major European airline in four months after the Persian Gulf carrier pulled the plug on funding Italy’s Alitalia SpA in May.
While Air Berlin, which has 8,600 staff, will continue flying with the help of a government loan likely to last it until mid-November, Tuesday’s filing puts German jobs at risk weeks before German Chancellor Angela Merkel stands for re-election. Deutsche Lufthansa AG said it may buy parts of its biggest national rival.