Air Berlin (1991) (Berlin Tegel) has confirmed that it will not pursue government guarantees following news last week that its proposals may have been rejected. The airline had made an initial application to the governments of both Berlin and North-Rhine Westphalia for a publicly secured loan to help it refinance high-interest debts. However, Berliner Morgenpost reported that the Berlin government had no appetite for securing a loan for the carrier.
The airline's CEO Thomas Winkelmann has now said that they will not go ahead with those applications, as there was no longer "any need" following the successful renegotiation of leasing contracts and a lowering of operating expenses.
"We had made a preliminary application for a surety as part of management's pre-emptive strategy of investigating all restructuring options for airberlin," Winkelmann said in a statement. "However, we have at no point made a binding application for a surety, and will not do so."
At the close of 2016, Air Berlin was left with operating losses of EUR667 million (USD748 million), more than double 2015's losses. Its net debt now stands at EUR1.18 billion (USD1.3 billion).
"There is quite simply no longer any need for a government guarantee to secure any loans," Winkelmann said.
