Etihad Airways (EY, Abu Dhabi International) has filed a case in the High Court in London seeking to move the dispute with airberlin group liquidators over up to EUR2 billion euros (USD2.3 billion) in damages to the British court, Reuters has reported.
Etihad Aviation Group's move comes in response to a lawsuit initiated last year by the liquidators in a German court. The Emirati holding said that it had invested in Air Berlin (1991) "as a UK public company" and as such any disputes arising from the project should fall under the British court's jurisdiction.
"The insolvency administrator’s case has no basis and we are confident that we will prevail wherever the case is determined," the carrier said.
The German carrier's liquidators responded by saying that, in their view, the Berlin court has jurisdiction over the dispute.
The claim dates back to a 2017 letter sent by Etihad Airways to Air Berlin, promising to continue to support the struggling carrier. The Emirati group held a 29.2% stake in airberlin group and had effectively bankrolled its operations since its investment in 2012. However, in August 2017, Etihad Airways withdrew further funds, directly causing Air Berlin (1991)'s insolvency and collapse in October 2017.
The liquidators are seeking damages from the Emirati investor saying that it broke the law by reneging on its earlier, allegedly legally binding pledges. The letter sent to Air Berlin was signed by the then CEO of the group, James Hogan.
