Bloomberg: Air Berlin Files for Insolvency as Etihad Pulls Funding Plug

Air Berlin Plc filed for insolvency after leading shareholder Etihad Airways PJSC withdrew its financial support, marking the second failure of a major European airline in four months after the Persian Gulf carrier pulled the plug on funding Italy’s Alitalia SpA in May. While Air Berlin said in a statement Tuesday that it will continue flying with the help of government loans, the filing puts thousands of German jobs at risk weeks before German Chancellor Angela Merkel stands for re-election. Deutsche Lufthansa AG said it may buy parts of its main national rival.