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Air Berlin

Air Berlin creditors plan to sue Etihad

The sum to be sought through the courts could stretch to more than €1 billion.

The creditors of bankrupt German airline Air Berlin have decided to sue its former parent company Etihad Airways, the news agency Reuters reports. The figure to be demanded could be more than €1 billion.

The court action would be to sue for damages over the move by the Abu Dhabi-based airline to withdraw funding last August, which sent Germany’s second-largest carrier tumbling into administration.

According to an unnamed source involved in the process, the creditors have asked the administrator to find a firm to finance the planned litigation.

Air Berlin and the administrator declined to comment to Reuters, while Etihad, which is dealing with a range of problems, was not available for comment.

A billion wanted
The administrator, Lucas Floether, has previously said he was looking at possible claims against Etihad that could reach more than €1 billion, explaining that Etihad had failed to meet its financial obligations toward Air Berlin.

With the money, he wants to satisfy as many creditor demands as possible.

Etihad owned a 29% stake in Air Berlin and had been providing funding for the struggling carrier since first buying shares in it in early 2012. Last April, Etihad assured it would continue to give funding for the following 18 months. But in August it withdrew that support.

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