Air Berlin (1991)'s insolvency administrator, Lucas Floether, has filed a claim of up to EUR2 billion euro (USD2.26 billion) from former majority shareholder Etihad Airways (EY, Abu Dhabi International), a statement issued by a Berlin regional court has revealed.
According to the disclosure, the defunct German carrier's claims are for EUR500 million (USD565 million) and a finding that the Emirati carrier must pay additional damages. As such, the court has provisionally set the value in dispute at up to EUR2 billion.
According to Floether, Air Berlin's claims centre on Etihad's alleged breach of a letter sent in April 2017 to the German carrier by Etihad's then CEO James Hogan. At the time, Etihad held a 29.2% stake in Air Berlin. In the letter, Hogan assured Air Berlin that the Emirati holding would continue to finance its activities through at least the end of 2018. However, in August of that year, Etihad withdrew further funding to Air Berlin, leading to the airline's entry into bankruptcy.
Etihad has, in response, stated it would contest the case for which it has until the end of January to respond.
“We believe that the claim is without merit and will defend ourselves vigorously against it,” a spokesperson told Arabian Business. “Furthermore, we will not comment publicly on this issue at this time.”
Etihad is also facing court battles in Italy where Alitalia (AZA, Rome Fiumicino) is contesting Etihad's ownership of the MilleMiglia loyalty programme via a court case in Milan. The two sides are also involved in a dispute centring on a VIP A340-500 aircraft which Etihad had leased out to the Italians on a contract running through to 2025. Alitalia has, however, signalled its intention to exit the agreement as soon as possible.
Etihad holds a 49% stake in Alitalia.
