A state guarantee from the German government to help keep Air Berlin (1991) (Berlin Tegel) operational is being challenged by Germania (Berlin Schönefeld), the Frankfurter Allgemeine Zeitung (FAZ) has reported. The newspaper further reports that the EUR150 million (USD179 million) loan has not yet actually been paid by the Federal Government, with the airline using its own cash reserves which are expected to last until mid-September.
In its filing, Germania calls the state loan 'incomprehensible'. However, the lodgement of the complaint does not have the power to hinder the government's ability to make the payout, should it be necessary to do so before the hearing date. The case is scheduled to be heard on September 15, which is also when the next creditor meeting will be held.
According to the FAZ report, the state guarantee was necessary to prevent Air Berlin from losing its Air Operator's Certificate (AOC) when it filed for insolvency. The government is betting on not needing to make the payout, hoping to wrap up Air Berlin's sale quickly. However, proceedings have been complicated by wide-ranging interest from various parties and allegations that Lufthansa (LH, Frankfurt International) is receiving favouritism.
