Air Berlin deep in debt

FRANKFURT Struggling German airline Air Berlin, last weekend, reported a fresh loss for the financial year 2016, as it takes the first steps in a far-reaching restructuring launched last year.

Last year, the Berlin-based carrier suffered a net loss of 782 million euros (USD855 million), up from 447 million euros in 2015.

“Today’s financial result is extremely unsatisfying,” said chief executive Thomas Winkelmann during a telephone conference with journalists.

“The old Air Berlin was an airline that wanted to do everything. The numbers show very clearly that that doesn’t work,” the former Lufthansa executive went on.

Winkelmann hopes to reorient the firm and bring it back to profitability, and said he was “open to new partnerships and cooperation,” including new investors, in a context of reshuffling in the air travel sector.

Air Berlin, Germany’s second-largest airline, has been battling headwinds for years.

Executives presented a massive restructuring plan in late September that included renting 38 aircraft with crew to Lufthansa and slashing 1,200 jobs — or one in seven of its workforce.

The group also split off its package holiday business, which especially serves popular beach destinations.

In future, the unit is to become part of a joint venture with Gulf airline Etihad, an Air Berlin investor to the tune of 29.2% of shares, as well as German tour operator TUI and Austria’s Niki.

Air Berlin itself will focus on high-end travel and long-haul services, promising more routes to the United States beginning in May.

The firm’s results have left the red just once since 2008, leaving it dependent on regular cash infusions from Etihad for survival.

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