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Air Berlin

Air Berlin PLC & Co. Luftverkehrs KG (FWB: AB1), branded as airberlin or airberlin.com was a major German airline. At its peak, it was Germany's second-largest airline, as well as Europe's tenth-largest airline in terms of passengers carried.[3] It was headquartered in Berlin[4] and had hubs at Berlin Tegel Airport and Düsseldorf Airport. It was a member of the Oneworld airline alliance.

Air Berlin
IATA ICAO Callsign
AB BER AIR BERLIN
Founded1978 (1978)
(as Air Berlin USA)
Commenced operations
  • 28 April 1979 (1979-04-28)
    (as Air Berlin USA)
  • 1991 (1991)
    (as Air Berlin GmbH & Co. Luftverkehrs KG)
Ceased operations27 October 2017 (2017-10-27)
Hubs
Focus cities
Frequent-flyer programtopbonus
AllianceOneworld (2012—2017)
Subsidiaries
Parent companyAir Berlin PLC & Co. Luftverkehrs KG
HeadquartersAirport Bureau Center, Charlottenburg-Wilmersdorf, Berlin, Germany
Key peopleThomas Winkelmann (CEO)
Employees8,481 (2016)[1][2]

The airline was founded by American interests in 1978 to provide airline service to West Berlin, a territory that could not legally be served by West German airlines such as Lufthansa due to political restrictions on East German airspace. Air Berlin became a German-owned company in 1991, shortly after the reunification of Germany, and eventually joined the Oneworld alliance in 2012. After years of losses, Air Berlin filed for insolvency on 15 August 2017[5] and ceased operations on 27 October 2017.[6]

History

1978–1990: American charter airline in West Berlin

 
Air Berlin's aircraft livery has changed several times. The original Air Berlin USA livery (pictured) was used on the airline's Boeing 707s and Boeing 737-200s...[7]
 
... which was replaced with this Hapag-Lloyd Flug-hybrid livery during the early 1980s, when Air Berlin operated a single Boeing 737-200.
 
A ruby-colored livery was introduced when the Boeing 737-300 (pictured) was put in service in 1986,...
 
... and remained largely unchanged for more than two decades (the later version is shown here on an Airbus A320-200 in 2007).
 
After the merger with LTU in 2007, the new basic LTU scheme was adopted,...
 
... and was used in an interim scheme until the introduction of the new logo,...
 
... to become this bright red color scheme as featured on this Boeing 737-800, which was the airline's last livery.
 
The original Air Berlin USA logo

Originally registered as Air Berlin USA,[8] the company was founded in 1978 as a wholly owned subsidiary of Lelco, an American agricultural enterprise headquartered in Oregon,[8] to operate charter flights on behalf of German tour operators from Berlin Tegel Airport, mostly to Mediterranean holiday resorts.[8][9]

The co-founders of Air Berlin USA were:

Lelco was the agriculture business of Kim Lundgren's family in the United States.[10]

As a United States airline, Air Berlin was able to access the West Berlin airline market. During the Cold War, Berlin's special political status meant that the air corridors into and out of Tegel Airport could only be used by airlines registered in France, the United Kingdom or the United States. The airline's headquarters were initially at Tegel Airport. Leonard Lundgren was the first chairman.[8]

After the company was issued an airline licence and acquired two Boeing 707 jet airliners previously owned by Trans World Airlines, Air Berlin USA commenced revenue services on 28 April 1979 with a flight from Berlin-Tegel to Palma de Mallorca.[14][15] Plans were made to start long-haul flights on West Berlin-Brussels-Florida routes,[14][16] in cooperation with Air Florida (an agreement to that effect had been signed in February 1979).[17]

In 1980, two Boeing 737-200s were leased from Air Florida.[18] In 1981, Air Berlin USA continued its weekly scheduled Boeing 707 service on the Berlin Tegel Airport - Brussels - Orlando route;[19] however, by 1982, the 707s had been phased out, and during most of the 1980s, Air Berlin USA operated only a single 737-200[20] or (from 1986) a 737-300.[18][21] In 1990 and 1991, two Boeing 737-400s were also placed into service.[9][18][22]

1990–2000: New investors and expansion

German reunification led to significant changes to the European aviation market, and in particular in Berlin: German airlines now gained access to the city. In 1991, Air Berlin (which had 90 employees at the time)[23] was restructured as Air Berlin GmbH & Co. Luftverkehrs KG, a German-registered company, with several German investors joining Kim Lundgren, the original founder, thereby bringing the ownership in line with German foreign-control requirements.[24] Joachim Hunold (de), a former sales and marketing director with LTU International, now led the company.

Following an order for ten Boeing 737-800s, Air Berlin grew and by 1999, the fleet grew to twelve aircraft.[25] In 2001, Air Berlin and Hapag-Lloyd Flug became the first airlines in the world to have their Boeing 737-800s fitted with blended winglets, wingtip devices that are intended to improve fuel efficiency.[26]

Air Berlin introduced scheduled flights (which could be booked directly with the airline rather than via a tour operator) in 1997, initially linking a number of secondary German airports to Mallorca.[15] By 2002, 35 percent of Air Berlin's tickets were sold directly.[27] In the same year, the airline expanded beyond holiday destinations as low-fare flights marketed as "City Shuttle" to London, Barcelona, Milan and Vienna started.[15][27] Besides Berlin-Tegel, these routes were opened at six German airports (Dortmund, Düsseldorf, Hamburg, Münster/Osnabrück, Nuremberg, and Paderborn/Lippstadt)[28] that until then had not been served by one of the rising European low-cost carriers.[27] In what later became a hallmark for Air Berlin as a "semi-low cost carrier", the airline offered complimentary meals and seat reservations,[28] in contrast to its competitors Buzz, Hapag-Lloyd Express, Ryanair and Virgin Express.

2000–2006: Becoming Germany’s second-largest airline

In November 2001, the delivery flight of a Boeing 737-800 fitted with winglets set a record: the aircraft with the registration code D-ABBC flew 8,345 kilometres non-stop from Seattle (Boeing Field), USA to Berlin (TXL), Germany in 9 hours, 10 minutes.[citation needed]

In January 2004, Air Berlin announced it would cooperate with Niki, a Vienna-based airline.[15] As part of the deal, Air Berlin took a 24% stake in Niki.[citation needed]

 
The old Air Berlin logo used from 1986 until 2008.

In 2005, Air Berlin signed a partnership agreement with Germania. As part of the deal, Air Berlin leased some of Germania's aircraft and crew, and Germania became almost exclusively a charter airline. Plans were made for Germania to be associated with Air Berlin under a management contract. However, the contract was not signed.[citation needed] At the beginning of March 2008, Germania's joint owners could not reach agreement on the takeover by Air Berlin, so Germania remained an independent airline. A joint Air Berlin/Germania subsidiary dubbed Air Zürich and planned to be based at Zurich Airport was proposed in 2005, but did not materialize.[citation needed]

In 2005, the Group reorganised its corporate structure. It established Air Berlin plc (registered in England) into which it reversed Air Berlin GmbH & Co. Luftverkehrs KG and subsidiaries.[29] It was suggested that the reason for the group to establish a UK-based PLC instead of a German-based AG was to avoid the need to have a supervisory board and employee representation as required by the German law of Mitbestimmung or co-determination.[30]

In 2006, Air Berlin went public on the Frankfurt Stock Exchange. Originally scheduled for 5 May 2006, the IPO was postponed to 11 May 2006. The company said the delay was due to rises in fuel costs and other market pressures limiting investor demand. It reduced the initial share-price range from 15.0–17.5 euros to 11.5–14.5 euros. The stock opened at €12.0, selling a total of 42.5 million shares. Of these, 19.6 million were new shares increasing capital in the company, and the remainder to repay loans extended by the original shareholders and invested in the company earlier in 2006. After the IPO, the company claimed to have over 400 million euros in cash to fund further expansion, including aircraft purchases.[31]

In August 2006, Air Berlin acquired German domestic airline dba.[32] Flight operations at dba were continued as a fully owned subsidiary of Air Berlin until 14 November 2008, when the dba brand was discontinued due to staff strikes (dba staff were subsequently offered positions with Air Berlin).

On 28 November 2006, Air Berlin ordered 60 Boeing 737-800 aircraft,[33] and 15 smaller Boeing 737-700 aircraft. The value of the 75 aircraft was 5.1 billion dollars (based on list prices at the time.) Delivery of the aircraft started in 2007. All of these aircraft were equipped with blended winglets, to improve fuel efficiency.

2007–2012: Takeovers, expansion and new alliances

 
In 2005, one of Air Berlin's Boeing 737-700s featured a special livery promoting Boeing's Dreamliner program.
 
Following the takeover of LTU in 2007, the Airbus A330-200 (pictured) became part of Air Berlin's fleet. This long-haul aircraft enabled the airline to fly to intercontinental destinations like Bangkok (as in this case, depicting an approach to Suvarnabhumi Airport in 2008).

In March 2007, Air Berlin took over German leisure airline LTU, gaining access to the long-haul market and becoming the fourth-largest airline group in Europe in terms of passenger traffic. This deal led to the introduction of Airbus A321 and Airbus A330 aircraft into Air Berlin's fleet. On 1 May 2009, the LTU brand was discontinued.

On 7 July 2007, Air Berlin announced an order for 25 Boeing 787-8 Dreamliner long-haul aircraft, with further options and purchase rights.[34] Three additional aircraft of this type were to be leased from ILFC.

On 21 August 2007, Air Berlin acquired a 49 percent shareholding in Swiss charter airline Belair, the remainder being owned by tour operator Hotelplan.[35] Following the deal, Belair's long-haul business was terminated, and the fleet was replaced by Airbus A320 family aircraft operating scheduled flights on behalf of Air Berlin as well as charter flights for Hotelplan.

On 20 September 2007, Air Berlin announced it intended to buy its competitor Condor in a deal that envisaged Condor's owner, Thomas Cook Group, taking a 30% stake in Air Berlin.[36] However, the rapidly increasing price of jet fuel and other considerations led to the abandonment of the deal in July 2008.

In January 2008 Air Berlin introduced a new logo and corporate design. The logo is a white oval shape on a red background (suggesting an aircraft window) where the letter "a" is a white circle and two white stylised wings. The text "Air Berlin" was in lower case and written as one word. Sometimes the slogan "Your Airline" was featured as part of the logo.[37]

In June 2008, CEO Joachim Hunold offended Catalan language speakers, when he claimed[38] in an article included in Air Berlin's in-flight magazine that the government of the Balearic Islands was trying to impose the use of Catalan on Air Berlin flights from and to Majorca. He claimed that Air Berlin was an international airline and was not obliged to use Catalan. Hunold went on to criticise the language policy in Catalonia and the Balearic Islands, claiming that at the time many children could not speak any Spanish.[39] The Balearic Islands' President, Francesc Antich, explained that his government had simply sent a letter to encourage airlines operating in the Balearic Islands to include Catalan among the languages used for onboard announcements.[40]

On 18 June of the same year, Air Berlin announced that it would reduce its long-haul services by 13 percent and its domestic services by 10 percent to increase profitability.[41]

In September 2008, Air Berlin confirmed merger talks with competitor TUIfly, but added it was speaking with all parties. Air Berlin had, until 2007, been flying many code-share TUI flights. At the end of March 2009, Air Berlin PLC and TUI Travel PLC signed a deal by which their German flight businesses were to operate a long-term strategic alliance. Originally, each company was to take a 19.9% stake in the other and the German cartel authorities were petitioned for approval. After the Bundeskartellamt expressed concerns, the cross-ownership plan was not implemented. Instead, TUI Travel PLC purchased a 9.9% stake in Air Berlin PLC using a capital increase at a subsidiary to do so.[42]

At the end of March 2009, a strategic partnership agreement with TUI Travel was signed, with Air Berlin and its competitor TUIfly purchasing 19.9 percent of the other's shares.[43] Following the deal, Air Berlin took over all German domestic TUIfly routes, as well as those to Italy, Croatia and Austria. Also, all of Tuifly's Boeing 737-700 aircraft were added to Air Berlin's fleet. TUIfly was to abandon all scheduled flights and rely exclusively on the charter business.[44]

In March 2009, ESAS Holding A.S., a Turkish company, bought approximately 15 per cent of the voting shares in Air Berlin.[45]

Also in 2009, Air Berlin added Hartmut Mehdorn to the board of directors after his retirement at Deutsche Bahn.[46]

Air Berlin Group
Company Interest
airberlin technik GmbH 100 %
airberlin Holidays GmbH 049 %
Belair 100 %
Niki 100 %

In April 2010 Air Berlin expanded its codeshare arrangements with Russia's S7 Airlines. Air Berlin and S7 Airlines had cooperated since October 2008. New services included codeshare flights via Moscow to Irkutsk, Perm and Rostov.[47]

In July 2010, Air Berlin announced an increase in its shareholding in the Austrian airline Niki. Air Berlin indirectly acquired 25.9% of the shares in Niki from Privatstiftung Lauda (private Lauda foundation) and in doing so increased its shareholding in Niki from 24% to 49.9%. In connection with the increase of its shareholding, Air Berlin was to grant the private Lauda foundation a 40.5 million-euro loan. The private foundation had the options to repay the loan in three years with cash or through the transfer of the remaining 50.1% of Niki's shares.[48]

 
After becoming a member of Oneworld, several Air Berlin aircraft displayed the alliance's logo, as seen on this Boeing 737-800.
 
An Airbus A319 on final approach at Zurich Airport in 2010, featuring a livery variant using the "Air Berlin" titles on the tail prior to the introduction of the last logo

In July 2010, it was also announced that Air Berlin would join Oneworld, the global airline alliance.[49] In preparation for joining the alliance, Air Berlin made codeshare agreements with Finnair and American Airlines starting with the 2010/2011 winter schedule.[50]

Air Berlin founded Follow Me Entertainment GmbH in September 2010 as a joint venture with kick-media ag. This joint-venture company markets image and sound media, books, games as well as events, concerts, tournaments and sponsoring.[51]

On 1 April 2011 Air Berlin completed the integration of LTU. All Air Berlin Group technical services were consolidated in a new company called airberlin technik GmbH.[52] It also added new routes, more frequent flights and additional long-haul flights from Düsseldorf.[53]

On 15 June 2011, Air Berlin and British Airways reached a codeshare agreement covering some flights within Europe, starting from 5 July 2011. The agreement applied to flights to over 40 European destinations served by the two airlines.[54]

CEO Joachim Hunold resigned from his position on 1 September 2011 and was succeeded by the former CEO of Deutsche Bahn AG, Hartmut Mehdorn, who led the company on an interim basis until January 2013.[55]

In November 2011 Air Berlin and Pegasus Airlines (Turkey's largest private airline) launched Air Berlin Turkey, aiming at the charter market between Germany and Turkey. Pegasus Airlines is 16.5% owned by ESAS Holding AS.[56][57][58] The new airline was absorbed into Pegasus Airlines on 31 March 2013.[59]

In the third quarter of 2011, the turnover of the company amounted to 1.4 billion euros, an increase of 11%. However, operating profit decreased by almost to 50%, around 97 million euros. As a result, a new bond to raise additional capital was issued.[60]

In November 2011 Air Berlin took over the remaining 50.1% stake in NIKI as repayment of a loan and became its sole owner. The brand name was retained and Niki Lauda was given a position on the board of Air Berlin.[61]

Air Berlin announced on 19 December 2011 that the Abu Dhabi airline Etihad Airways had increased its share of Air Berlin from 2.99% to 29.1%, for a sum of 73 million euros, making Etihad the company's largest shareholder.[62] The deal supplied more cash to Air Berlin, and provided Etihad access to Air Berlin's European network.[62]

2012–2015: Restructuring amid continuing losses

 
Air Berlin aircraft at Terminal C of Berlin Tegel Airport in September 2014

The cooperation of the frequent-flyer programs topbonus and Etihad Guest was announced in March 2012.[63] In June 2012, the collaboration concluded with the bonus programs airberlin business points and Etihad Airways Business Connect for SMBs.[64]

On 20 March 2012, the entry into Oneworld was officially completed.[65] The Oneworld network offered over 800 destinations in 150 countries.[66] At the same time, the airline introduced the Platinum status for its frequent-flyer program topbonus.[67] In May 2012 Air Berlin presented its new fare structure "Your Fare" including "Just Fly", "Fly Classic" and "FlyFlex" for flights from 1 July 2012.[68] On 11 May 2012 Air Berlin opened its triweekly non-stop flight from Berlin to Los Angeles in the summer schedule, a destination which until then had only been served from Düsseldorf.[69] On 18 December 2012 Air Berlin announced that topbonus, its frequent flyer program, would be sold to Etihad Airways; only a 30-percent minority share would be retained.[70] Air Berlin also announced the expansion of the existing codeshare agreement with Etihad Airways on 20 December 2012.[71]

In January 2013, the first Airbus A330-200 was introduced with a new business class which enabled a fully flat position for the first time.[72] On 7 January 2013 Air Berlin appointed Austrian Wolfgang Prock-Schauer, former Chief Strategy and Planning Officer, as the company's CEO, replacing Hartmut Mehdorn.[73]

Air Berlin started flights between Berlin and Chicago on 23 March 2013. It cancelled the seasonal non-stop flights to Las Vegas, San Francisco and Vancouver.[74] In March 2013 Air Berlin announced the closure of its seasonal hub for leisure destinations at Nuremberg Airport. Only ten year-round direct routes remained.[75]

On 24 September 2014, Air Berlin cancelled the remaining 15 orders for their Boeing 787s as well as 18 remaining orders for Boeing 737-800s as part of their restructuring programme.[76] In October 2014, the Luftfahrt-Bundesamt denied Air Berlin authorization to operate 34 routes as a codeshare with co-owner Etihad from the 2014/2015 winter schedule as they would contravene the bilateral traffic rights between Germany and the UAE.[77] Also in October 2014, Air Berlin announced the termination of flights to Palma de Mallorca from both Bremen Airport and Dortmund Airport, therefore withdrawing entirely from these two German airports.[78]

Air Berlin announced a net loss for 2014 of €376m (€316m loss in 2013). The airline's revenues in 2014 stagnated at €4.16 billion.[79][80]

In September 2015, Air Berlin phased out the last Boeing 737-700s owned by the company. The remaining aircraft of this type would operate on a wet lease basis from TUIfly until 2019. All Boeing 737-800s were to be phased out by 2016 as Air Berlin plans to focus their short- and medium-haul fleet on the Airbus A320 family to cut costs.[81] In November 2015, Air Berlin announced the closure of its Palma de Mallorca Airport hub by ceasing all of the hub's seven Spanish domestic routes by 3 April 2016.[82][83] Some days earlier, the airline announced plans to add flights from Düsseldorf to Boston, Dallas/Fort Worth, San Francisco and Havana by spring 2016.[84] However, the planned route to Dallas/Fort Worth was cancelled a few weeks later due to low demand.[85] On 30 December 2015, the administrative court in Braunschweig ruled in favour of the German civil aviation authority (the Luftfahrt-Bundesamt) and against Air Berlin regarding some of their codeshare operations with Etihad Airways. The shared sale and advertising of 31 out of 83 routes which were marketed by both were declared illegal and ordered stopped by 15 January 2016 as they were not covered by the bilateral air-traffic agreement between Germany and the UAE. The Luftfahrt-Bundesamt had allowed these flights until a definite legal ruling was made.[86]

2016–2017: Restructuring efforts

In April 2016, Air Berlin announced a record loss of €446 million for 2015; the airline's revenues had decreased to €4.08 billion.[87] Amongst the reasons considered for Air Berlin's poor performance were: crippling debt of over €800m; unclear and rapid strategy changes on routes and advertising; several CEOs over recent years; a five-year-plus delay to the new hub Berlin Brandenburg Airport; failed negotiations to profit from lower fuel prices and the overall harsh competition in the airline industry.[88] In July 2016, Air Berlin confirmed that it no longer owned any of the aircraft it operates, having sold and leased back the last of the aircraft it had previously owned.[89] A few weeks later it was reported that Air Berlin and Etihad Airways were in talks with Lufthansa regarding the latter's acquisition of some of Air Berlin's routes outside of the Berlin and Düsseldorf hubs as well as some staff and aircraft leases.[90] Also in July 2016, Air Berlin announced the increase of flights to the United States from 55 to 78 nonstops per week for 2017. Besides some frequency increases, Los Angeles and San Francisco were to be served from Berlin as well as by the then existing Düsseldorf routes. And a new Düsseldorf-Orlando route was announced.[91] A few days later, the airline announced the introduction of a business class on its short- and medium-haul flights.[92]

In December 2016, Air Berlin announced Stefan Pichler's departure after serving two years as CEO and replacement by former head of Germanwings, Thomas Winkelmann on 1 February.[93]

The "new Air Berlin" project

On 28 September 2016, Air Berlin announced The new airberlin, a restructuring project including the reduction of its destinations from around 140 to 70, the focus on the Berlin and Düsseldorf hubs and on the smaller bases in Stuttgart and Munich, the closure of six other bases, the targeting of business travellers, focus on domestic German flights and on flights to Italy, Scandinavia and eastern Europe, the expansion of its long-haul network, and the loss of up to 1,200 jobs.[94]

Air Berlin, including its subsidiaries Belair and Niki, planned to cut 40 of its fleet of 118 narrowbody jets, leaving Air Berlin with its own fleet of 75 aircraft. The new fleet would be 17 Airbus A330-200 for long-haul operations and 40 Airbus A320 family aircraft and 18 Bombardier Q400 aircraft for European routes.[94][95] A separate, tourist-destination-oriented unit with 35 aircraft was to be formed, perhaps operating with a partner (TUIfly was the assumed partner as they already operate several aircraft for Air Berlin)[96] – or sold altogether.[94] Plans to wet lease the remaining aircraft were realised with the December 2016 announcement that 38 Airbus A319/A320 aircraft would be wet leased to Lufthansa Group's Eurowings (33 aircraft) and Austrian Airlines (five), effective February 2017 for a period of six years.[97]

In October 2016, Air Berlin announced plans to close four of its seven airberlin Technik maintenance facilities and lay off 500 of their staff.[98] On 5 December 2016, Air Berlin announced plans to sell its entire 49-percent stake in its Austrian subsidiary Niki to its own minority owner, Etihad Airways.[99][100] It was also announced that Niki will take over several routes to southern European, north African and Turkish leisure destinations from Air Berlin as part of the new joint-venture.[100] Also in December 2016, Air Berlin announced the transfer of its entire fleet of 21 A321-200s to Niki and Niki's transfer of all its 5 A319-100s and 13 A320-200s to Air Berlin.[101] Air Berlin would discontinue its wet lease with TUIfly.[101]

In January 2017, Air Berlin announced that for summer 2017, most leisure routes were to be either transferred to Niki or cancelled altogether and that some domestic and European city routes were to be dropped, leaving little more than the Berlin-Tegel and Düsseldorf hub operations.[102] On 28 April 2017, a loss of −781.9 million was announced for 2016, from a revenue of 3.79 billion.[1] Also in late April 2017, Air Berlin confirmed the creation of Air Berlin Aeronautics GmbH, a new subsidiary which was to have its own operational licence (AOC) to take over the wet lease operations handled by Air Berlin on behalf of Eurowings and Austrian Airlines. Therefore, the "actual" Air Berlin would focus on operations under its own brand name.[103] In May 2017, Air Berlin announced it would buy Luftfahrtgesellschaft Walter entirely, in which it had a controlling stake since 2009.[104]

Bankruptcy

After Etihad stopped financial support, Air Berlin entered insolvency procedures on 15 August 2017.[105] On 9 October 2017, Air Berlin told its staff that it would cease all remaining operations under its own AB flight numbers due to its negative financial outlook and bankruptcy proceedings.[106] On 12 October 2017, Lufthansa agreed to buy 81 aircraft and employ 3,000 Air Berlin employees for €210 million, taking over the subsidiaries Niki and Luftfahrtgesellschaft Walter with a total of 1700 employees. On 24 October 2017, the Berliner Zeitfracht Group confirmed it would take over the Leisure Cargo Düsseldorf company and its 60 employees. The creditors' committee approved a corresponding submission. Leisure Cargo conveys freight space on passenger flights.[107] On 27 October 2017, it was announced that a 'consortium' of maintenance, repair, and operations provider Nayak Aircraft Services GmbH & Co. KG and Berliner Zeitfracht Group would purchase airberlin Technik, keeping over 300 employees.[108]

The final long-haul flight, from Miami to Düsseldorf, was operated on 15 October 2017.[109] On 27 October 2017, Air Berlin's final flight was operated by Airbus A320 D-ABNW. It departed from Munich at 21:36 and landed at Berlin Tegel at 22:45.[110] On 28 October 2017, it was announced that EasyJet would absorb 1,000 employees and lease 25 Airbus A320 aircraft for flights from Berlin Tegel for €40 million.[111]

Corporate affairs

 
Air Berlin headquarters at the Airport Bureau Center in Charlottenburg-Wilmersdorf, Berlin.

Ownership

Air Berlin PLC shares were publicly traded on Xetra and on the Frankfurt Stock Exchange in the regulated market. Trading in the regulated unofficial market occurred at the exchanges in Berlin, Düsseldorf, Hamburg, Munich and Stuttgart.[112] Since December 2011, Etihad Airways was the largest shareholder in Air Berlin. As of December 2015, the major shareholders (over 5%) were:[87]

Name Interest
Etihad Airways PJSC 29.21%
ESAS Holding AS (owners of Pegasus Airlines) 12.02%
Other shareholders 58.77%
Total 100.00 %

Business trends

 
Stefan Pichler, CEO of Air Berlin from 2016 to February 2017.

Air Berlin was loss-making for several years. The key figures for the whole Air Berlin Group (including Niki) for the full years of operation leading up to its closure were (as at year ending 31 December):

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Turnover (€m) 1,575 2,537 3,401 3,240 3,850 4,227 4,312 4,147 4,160 4,081 3,785
Net profit (€m) 40.1 21.0 −75.0 −9.5 −106.3 −420.4 6.8 −315.5 −376.7 −446.6 −781.9
Number of employees 4,108 8,360 8,311 8,278 8,900 9,113 9,284 8,905 8,440 8,869 8,481
Number of passengers (m) 19.7 27.9 28.6 27.9 34.9 35.3 33.3 31.5 31.7 30.2 28.9
Passenger load factor (%) 75.3 77.3 78.4 77.5 76.8 84.5 83.6 84.9 83.5 84.2 84.3
Number of aircraft (at year end) 117 124 125 152 169 170 155 140 149 153 144
Notes/sources [113] [114] [115] [116] [117] [118] [119] [120] [79] [87] [121]

Flight school

Air Berlin trained its own pilots since 2007 in a joint venture with the TFC Käufer flight school. Commercial pilot training lasted around 24 months. The Air Berlin flight school was the first flight school in Germany to be awarded a training licence by the German Department of Aviation for the new Multi-Crew Pilot Licence concept in February 2009.[122]

Technical services

Air Berlin had its own maintenance and overhaul branch, airberlin technik with facilities in Berlin, Düsseldorf, Munich, Stuttgart, Frankfurt, Hamburg, and Nuremberg, which employed 1300 staff as of October 2016.[98] The technical branch was a certified EASA Part-145 maintenance organization with approximately 1200 employees providing services to both Air Berlin group aircraft and customers throughout Europe. airberlin technik was recognized and approved by various National Airworthiness Authorities such as USA FAA-145, Canadian CAA-145, Aruba EASA-145, Federal Aviation Authority of Russia, GCAA, United Arab Emirates.[123] In October 2016, Air Berlin announced it would close the technical bases in Stuttgart, Frankfurt, Hamburg and Nuremberg while laying off 500 staff due to restructuring measures.[98]

Destinations

Prior to its shutdown, Air Berlin flew to scheduled year-round and seasonal destinations in Europe.[124]

Codeshare agreements

Air Berlin codeshared with the following airlines:[125]

Fleet

Latest fleet

 
Air Berlin Airbus A320-200
 
Air Berlin Airbus A330-200
 
Between 2004 and 2009, Air Berlin operated the Fokker 100. Most of them were leased from Germania.[18]

At the time of closure, Air Berlin's fleet comprised the following aircraft:[citation needed]

Aircraft In service Passengers Notes
C W Y+ Y Total
Airbus A319-100 11 4 146 150 Leased to Eurowings.
Airbus A320-200 64 165 165 21 leased to Eurowings.
4 176 180
Airbus A330-200 17 19 271 290
Bombardier Dash 8 Q400 20 3 70 73 Operated by LGW.
Total 112

Historic fleet

During its 40 years of operation, Air Berlin operated the following aircraft types:[126]

Aircraft Total Introduced Retired Notes
Airbus A319-100 21 2006 2017 Operated for Eurowings.
Airbus A320-200 117 2005 2017 10 acquired from LTU.
17 operated for Eurowings.
4 operated for Austrian Airlines.
27 purchased by Lufthansa.
25 transferred to easyJet.
Airbus A321-200 23 2008 2017 4 acquired from LTU.
Airbus A330-200 17 2008 2017 8 acquired from LTU.
6 leased by Malaysia Airlines.
10 sold to other airlines.
1 stored in LDE.
Airbus A330-300 3 2008 2013 Acquired from LTU.
British Aerospace BAe 146-200 3 2003 2004
Boeing 707-123 1 1980 1980 Operated by Air Berlin USA.
Boeing 707-321 1 1981 1981
Boeing 707-331 3 1979 1981
Boeing 737-200 5 1980 1986 Operated by Air Berlin USA.
Boeing 737-300 1 1986 1990 Operated by Air Berlin USA.
10 2007 2010 Operated by Germania.
Boeing 737-400 13 1990 2007
Boeing 737-700 32 2003 2017 Operated by TUI fly Deutschland.
Boeing 737-800 100 1998 2017 Last remaining active fleet was operated by TUI fly Deutschland.
Bombardier Dash 8 Q400 20 2008 2017 Operated by LGW.
Embraer 190 3 2013 2013 Transferred from Niki and subsequently returned, were operated by LGW.
Fokker 100 18 2004 2010

Services

Aircraft cabins

 
Air Berlin Airbus A319-100 cabin
 
Former Air Berlin long-haul business class cabin

Long-haul flights

Air Berlin long-haul aircraft featured business and economy class sections. At the beginning of 2012, Air Berlin started the renewal of its long-haul cabin, equipping both economy class and business class with new seats and a new in-flight entertainment system. Fully automatic seats that could tilt up to 170 degrees were provided in business class, along with an anti-thrombosis edition and an adjustable headrest, and more legroom and a narrower seat back in economy class. All seats have an 8.9-inch monitor with a touch screen and offer movies, series, music, audiobooks and games.[127] In January 2013 the airline again presented a new business class which replaced the one introduced a year earlier. The new business class had single seats, offering travellers even more privacy. The new seats had a full-flat function, a massage function, and featured a 15-inch monitor.[72]

Short- and medium-haul flights

Business class was not offered on its short- and medium-haul flights until Air Berlin announced its introduction in August 2016. All short- and medium-haul aircraft began to feature business class in row 1 with expanded services including an empty middle seat.[92]

Passenger services

 
Air Berlin check-in counters

In contrast to European pure low-cost carriers, Air Berlin offered free in-flight snacks and drinks until September 2016.[128] Newspapers and magazines were available on domestic German flights.[129] Full hot meals were complimentary on long-haul flights. On all Air Berlin routes with a flight time of 60 minutes or longer, gourmet meals were offered, which were, according to the airline, created by chefs at "Sansibar", a famous restaurant on the island of Sylt. The airline also offered in-flight entertainment, assigned seating and guaranteed flight connections.[130] Air Berlin's basic fares were nonrefundable and not changeable, so unused flights were a complete loss for the purchaser.

Frequent flyer program

Air Berlin's frequent flyer program was called topbonus. Points, known as miles, could be collected on flights operated by Air Berlin, Niki, Oneworld airline partners, and selected other airlines. Accrued miles could be redeemed for award flights, or for an upgrade to business class. In addition to the entry-level "topbonus Card Classic" there were cards with Silver, Gold, and Platinum status, corresponding to Oneworld Ruby, Sapphire, and Emerald statuses. A Service Card and a Credit Card, for which a charge was made, were also available.

Etihad purchased a 70% stake in topbonus for €184 million in 2012. Following the insolvency of Air Berlin, topbonus also filed for insolvency on 25 August 2017.[131]

See also

Notes

Notes
  1. ^ holder of supplemental air carrier certificate authorised to operate non-scheduled passenger and cargo services to supplement the scheduled operations of certificated route air carriers
  2. ^ the United States supplemental carrier industry association

Citations

References

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Bibliography

  • Berlin Airport Company – Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports, several issues (German language edition only), 1968–1992. West Berlin, Germany: Berlin Airport Company.
  • "Flight International". Flight International - Marketing Stories. Sutton, UK: Reed Business Information. ISSN 0015-3710. (various backdated issues relating to Air Berlin, 1979–2007)
  • "Airways — A Global Review of Commercial Flight (The Two Faces of Air Berlin), pp. 30–35". Airways: A Global Review of Commercial Flight. Sandpoint, ID, US: Airways International Inc. 17, 9. November 2010. ISSN 1074-4320.

External links

  Media related to Air Berlin at Wikimedia Commons

  • Official website  
  • Official Air Berlin information about their bankruptcy (in German and English)

berlin, luftverkehrs, branded, airberlin, airberlin, major, german, airline, peak, germany, second, largest, airline, well, europe, tenth, largest, airline, terms, passengers, carried, headquartered, berlin, hubs, berlin, tegel, airport, düsseldorf, airport, m. Air Berlin PLC amp Co Luftverkehrs KG FWB AB1 branded as airberlin or airberlin com was a major German airline At its peak it was Germany s second largest airline as well as Europe s tenth largest airline in terms of passengers carried 3 It was headquartered in Berlin 4 and had hubs at Berlin Tegel Airport and Dusseldorf Airport It was a member of the Oneworld airline alliance Air BerlinIATA ICAO CallsignAB BER AIR BERLINFounded1978 1978 as Air Berlin USA Commenced operations28 April 1979 1979 04 28 as Air Berlin USA 1991 1991 as Air Berlin GmbH amp Co Luftverkehrs KG Ceased operations27 October 2017 2017 10 27 HubsBerlin Tegel DusseldorfFocus citiesPalma de MallorcaFrequent flyer programtopbonusAllianceOneworld 2012 2017 SubsidiariesBelair 2001 2017 DBA 2006 2008 Niki 2003 2017 Parent companyAir Berlin PLC amp Co Luftverkehrs KGHeadquartersAirport Bureau Center Charlottenburg Wilmersdorf Berlin GermanyKey peopleThomas Winkelmann CEO Employees8 481 2016 1 2 The airline was founded by American interests in 1978 to provide airline service to West Berlin a territory that could not legally be served by West German airlines such as Lufthansa due to political restrictions on East German airspace Air Berlin became a German owned company in 1991 shortly after the reunification of Germany and eventually joined the Oneworld alliance in 2012 After years of losses Air Berlin filed for insolvency on 15 August 2017 5 and ceased operations on 27 October 2017 6 Contents 1 History 1 1 1978 1990 American charter airline in West Berlin 1 2 1990 2000 New investors and expansion 1 3 2000 2006 Becoming Germany s second largest airline 1 4 2007 2012 Takeovers expansion and new alliances 1 5 2012 2015 Restructuring amid continuing losses 1 6 2016 2017 Restructuring efforts 1 6 1 The new Air Berlin project 1 6 2 Bankruptcy 2 Corporate affairs 2 1 Ownership 2 2 Business trends 2 3 Flight school 2 4 Technical services 3 Destinations 3 1 Codeshare agreements 4 Fleet 4 1 Latest fleet 4 2 Historic fleet 5 Services 5 1 Aircraft cabins 5 1 1 Long haul flights 5 1 2 Short and medium haul flights 5 2 Passenger services 5 3 Frequent flyer program 6 See also 7 Notes 8 Citations 8 1 References 8 2 Bibliography 9 External linksHistory Edit1978 1990 American charter airline in West Berlin Edit Air Berlin s aircraft livery has changed several times The original Air Berlin USA livery pictured was used on the airline s Boeing 707s and Boeing 737 200s 7 which was replaced with this Hapag Lloyd Flug hybrid livery during the early 1980s when Air Berlin operated a single Boeing 737 200 A ruby colored livery was introduced when the Boeing 737 300 pictured was put in service in 1986 and remained largely unchanged for more than two decades the later version is shown here on an Airbus A320 200 in 2007 After the merger with LTU in 2007 the new basic LTU scheme was adopted and was used in an interim scheme until the introduction of the new logo to become this bright red color scheme as featured on this Boeing 737 800 which was the airline s last livery The original Air Berlin USA logo Originally registered as Air Berlin USA 8 the company was founded in 1978 as a wholly owned subsidiary of Lelco an American agricultural enterprise headquartered in Oregon 8 to operate charter flights on behalf of German tour operators from Berlin Tegel Airport mostly to Mediterranean holiday resorts 8 9 The co founders of Air Berlin USA were Kim Lundgren a former Berlin based flight engineer of Pan American World Airways John MacDonald a former station manager of United States supplemental nb 1 and charter airline Saturn Airways at Berlin Tempelhof Airport in the 1960s and subsequent general manager Europe and vice president at the Berlin Tegel Airport base of the former United States supplemental carrier and charter airline Modern Air from 1968 until 1974 Mort Beyer Modern Air s executive vice president from 1967 until 1971 as well as the airline s president and vice president of the National Air Carrier Association nb 2 in 1971 and founder of United States aviation consultancy Avmark 10 11 12 13 Lelco was the agriculture business of Kim Lundgren s family in the United States 10 As a United States airline Air Berlin was able to access the West Berlin airline market During the Cold War Berlin s special political status meant that the air corridors into and out of Tegel Airport could only be used by airlines registered in France the United Kingdom or the United States The airline s headquarters were initially at Tegel Airport Leonard Lundgren was the first chairman 8 After the company was issued an airline licence and acquired two Boeing 707 jet airliners previously owned by Trans World Airlines Air Berlin USA commenced revenue services on 28 April 1979 with a flight from Berlin Tegel to Palma de Mallorca 14 15 Plans were made to start long haul flights on West Berlin Brussels Florida routes 14 16 in cooperation with Air Florida an agreement to that effect had been signed in February 1979 17 In 1980 two Boeing 737 200s were leased from Air Florida 18 In 1981 Air Berlin USA continued its weekly scheduled Boeing 707 service on the Berlin Tegel Airport Brussels Orlando route 19 however by 1982 the 707s had been phased out and during most of the 1980s Air Berlin USA operated only a single 737 200 20 or from 1986 a 737 300 18 21 In 1990 and 1991 two Boeing 737 400s were also placed into service 9 18 22 1990 2000 New investors and expansion Edit German reunification led to significant changes to the European aviation market and in particular in Berlin German airlines now gained access to the city In 1991 Air Berlin which had 90 employees at the time 23 was restructured as Air Berlin GmbH amp Co Luftverkehrs KG a German registered company with several German investors joining Kim Lundgren the original founder thereby bringing the ownership in line with German foreign control requirements 24 Joachim Hunold de a former sales and marketing director with LTU International now led the company Following an order for ten Boeing 737 800s Air Berlin grew and by 1999 the fleet grew to twelve aircraft 25 In 2001 Air Berlin and Hapag Lloyd Flug became the first airlines in the world to have their Boeing 737 800s fitted with blended winglets wingtip devices that are intended to improve fuel efficiency 26 Air Berlin introduced scheduled flights which could be booked directly with the airline rather than via a tour operator in 1997 initially linking a number of secondary German airports to Mallorca 15 By 2002 35 percent of Air Berlin s tickets were sold directly 27 In the same year the airline expanded beyond holiday destinations as low fare flights marketed as City Shuttle to London Barcelona Milan and Vienna started 15 27 Besides Berlin Tegel these routes were opened at six German airports Dortmund Dusseldorf Hamburg Munster Osnabruck Nuremberg and Paderborn Lippstadt 28 that until then had not been served by one of the rising European low cost carriers 27 In what later became a hallmark for Air Berlin as a semi low cost carrier the airline offered complimentary meals and seat reservations 28 in contrast to its competitors Buzz Hapag Lloyd Express Ryanair and Virgin Express 2000 2006 Becoming Germany s second largest airline Edit In November 2001 the delivery flight of a Boeing 737 800 fitted with winglets set a record the aircraft with the registration code D ABBC flew 8 345 kilometres non stop from Seattle Boeing Field USA to Berlin TXL Germany in 9 hours 10 minutes citation needed In January 2004 Air Berlin announced it would cooperate with Niki a Vienna based airline 15 As part of the deal Air Berlin took a 24 stake in Niki citation needed The old Air Berlin logo used from 1986 until 2008 In 2005 Air Berlin signed a partnership agreement with Germania As part of the deal Air Berlin leased some of Germania s aircraft and crew and Germania became almost exclusively a charter airline Plans were made for Germania to be associated with Air Berlin under a management contract However the contract was not signed citation needed At the beginning of March 2008 Germania s joint owners could not reach agreement on the takeover by Air Berlin so Germania remained an independent airline A joint Air Berlin Germania subsidiary dubbed Air Zurich and planned to be based at Zurich Airport was proposed in 2005 but did not materialize citation needed In 2005 the Group reorganised its corporate structure It established Air Berlin plc registered in England into which it reversed Air Berlin GmbH amp Co Luftverkehrs KG and subsidiaries 29 It was suggested that the reason for the group to establish a UK based PLC instead of a German based AG was to avoid the need to have a supervisory board and employee representation as required by the German law of Mitbestimmung or co determination 30 In 2006 Air Berlin went public on the Frankfurt Stock Exchange Originally scheduled for 5 May 2006 the IPO was postponed to 11 May 2006 The company said the delay was due to rises in fuel costs and other market pressures limiting investor demand It reduced the initial share price range from 15 0 17 5 euros to 11 5 14 5 euros The stock opened at 12 0 selling a total of 42 5 million shares Of these 19 6 million were new shares increasing capital in the company and the remainder to repay loans extended by the original shareholders and invested in the company earlier in 2006 After the IPO the company claimed to have over 400 million euros in cash to fund further expansion including aircraft purchases 31 In August 2006 Air Berlin acquired German domestic airline dba 32 Flight operations at dba were continued as a fully owned subsidiary of Air Berlin until 14 November 2008 when the dba brand was discontinued due to staff strikes dba staff were subsequently offered positions with Air Berlin On 28 November 2006 Air Berlin ordered 60 Boeing 737 800 aircraft 33 and 15 smaller Boeing 737 700 aircraft The value of the 75 aircraft was 5 1 billion dollars based on list prices at the time Delivery of the aircraft started in 2007 All of these aircraft were equipped with blended winglets to improve fuel efficiency 2007 2012 Takeovers expansion and new alliances Edit In 2005 one of Air Berlin s Boeing 737 700s featured a special livery promoting Boeing s Dreamliner program Following the takeover of LTU in 2007 the Airbus A330 200 pictured became part of Air Berlin s fleet This long haul aircraft enabled the airline to fly to intercontinental destinations like Bangkok as in this case depicting an approach to Suvarnabhumi Airport in 2008 In March 2007 Air Berlin took over German leisure airline LTU gaining access to the long haul market and becoming the fourth largest airline group in Europe in terms of passenger traffic This deal led to the introduction of Airbus A321 and Airbus A330 aircraft into Air Berlin s fleet On 1 May 2009 the LTU brand was discontinued On 7 July 2007 Air Berlin announced an order for 25 Boeing 787 8 Dreamliner long haul aircraft with further options and purchase rights 34 Three additional aircraft of this type were to be leased from ILFC On 21 August 2007 Air Berlin acquired a 49 percent shareholding in Swiss charter airline Belair the remainder being owned by tour operator Hotelplan 35 Following the deal Belair s long haul business was terminated and the fleet was replaced by Airbus A320 family aircraft operating scheduled flights on behalf of Air Berlin as well as charter flights for Hotelplan On 20 September 2007 Air Berlin announced it intended to buy its competitor Condor in a deal that envisaged Condor s owner Thomas Cook Group taking a 30 stake in Air Berlin 36 However the rapidly increasing price of jet fuel and other considerations led to the abandonment of the deal in July 2008 In January 2008 Air Berlin introduced a new logo and corporate design The logo is a white oval shape on a red background suggesting an aircraft window where the letter a is a white circle and two white stylised wings The text Air Berlin was in lower case and written as one word Sometimes the slogan Your Airline was featured as part of the logo 37 In June 2008 CEO Joachim Hunold offended Catalan language speakers when he claimed 38 in an article included in Air Berlin s in flight magazine that the government of the Balearic Islands was trying to impose the use of Catalan on Air Berlin flights from and to Majorca He claimed that Air Berlin was an international airline and was not obliged to use Catalan Hunold went on to criticise the language policy in Catalonia and the Balearic Islands claiming that at the time many children could not speak any Spanish 39 The Balearic Islands President Francesc Antich explained that his government had simply sent a letter to encourage airlines operating in the Balearic Islands to include Catalan among the languages used for onboard announcements 40 On 18 June of the same year Air Berlin announced that it would reduce its long haul services by 13 percent and its domestic services by 10 percent to increase profitability 41 In September 2008 Air Berlin confirmed merger talks with competitor TUIfly but added it was speaking with all parties Air Berlin had until 2007 been flying many code share TUI flights At the end of March 2009 Air Berlin PLC and TUI Travel PLC signed a deal by which their German flight businesses were to operate a long term strategic alliance Originally each company was to take a 19 9 stake in the other and the German cartel authorities were petitioned for approval After the Bundeskartellamt expressed concerns the cross ownership plan was not implemented Instead TUI Travel PLC purchased a 9 9 stake in Air Berlin PLC using a capital increase at a subsidiary to do so 42 At the end of March 2009 a strategic partnership agreement with TUI Travel was signed with Air Berlin and its competitor TUIfly purchasing 19 9 percent of the other s shares 43 Following the deal Air Berlin took over all German domestic TUIfly routes as well as those to Italy Croatia and Austria Also all of Tuifly s Boeing 737 700 aircraft were added to Air Berlin s fleet TUIfly was to abandon all scheduled flights and rely exclusively on the charter business 44 In March 2009 ESAS Holding A S a Turkish company bought approximately 15 per cent of the voting shares in Air Berlin 45 Also in 2009 Air Berlin added Hartmut Mehdorn to the board of directors after his retirement at Deutsche Bahn 46 Air Berlin Group Company Interestairberlin technik GmbH 100 airberlin Holidays GmbH 0 49 Belair 100 Niki 100 In April 2010 Air Berlin expanded its codeshare arrangements with Russia s S7 Airlines Air Berlin and S7 Airlines had cooperated since October 2008 New services included codeshare flights via Moscow to Irkutsk Perm and Rostov 47 In July 2010 Air Berlin announced an increase in its shareholding in the Austrian airline Niki Air Berlin indirectly acquired 25 9 of the shares in Niki from Privatstiftung Lauda private Lauda foundation and in doing so increased its shareholding in Niki from 24 to 49 9 In connection with the increase of its shareholding Air Berlin was to grant the private Lauda foundation a 40 5 million euro loan The private foundation had the options to repay the loan in three years with cash or through the transfer of the remaining 50 1 of Niki s shares 48 After becoming a member of Oneworld several Air Berlin aircraft displayed the alliance s logo as seen on this Boeing 737 800 An Airbus A319 on final approach at Zurich Airport in 2010 featuring a livery variant using the Air Berlin titles on the tail prior to the introduction of the last logo In July 2010 it was also announced that Air Berlin would join Oneworld the global airline alliance 49 In preparation for joining the alliance Air Berlin made codeshare agreements with Finnair and American Airlines starting with the 2010 2011 winter schedule 50 Air Berlin founded Follow Me Entertainment GmbH in September 2010 as a joint venture with kick media ag This joint venture company markets image and sound media books games as well as events concerts tournaments and sponsoring 51 On 1 April 2011 Air Berlin completed the integration of LTU All Air Berlin Group technical services were consolidated in a new company called airberlin technik GmbH 52 It also added new routes more frequent flights and additional long haul flights from Dusseldorf 53 On 15 June 2011 Air Berlin and British Airways reached a codeshare agreement covering some flights within Europe starting from 5 July 2011 The agreement applied to flights to over 40 European destinations served by the two airlines 54 CEO Joachim Hunold resigned from his position on 1 September 2011 and was succeeded by the former CEO of Deutsche Bahn AG Hartmut Mehdorn who led the company on an interim basis until January 2013 55 In November 2011 Air Berlin and Pegasus Airlines Turkey s largest private airline launched Air Berlin Turkey aiming at the charter market between Germany and Turkey Pegasus Airlines is 16 5 owned by ESAS Holding AS 56 57 58 The new airline was absorbed into Pegasus Airlines on 31 March 2013 59 In the third quarter of 2011 the turnover of the company amounted to 1 4 billion euros an increase of 11 However operating profit decreased by almost to 50 around 97 million euros As a result a new bond to raise additional capital was issued 60 In November 2011 Air Berlin took over the remaining 50 1 stake in NIKI as repayment of a loan and became its sole owner The brand name was retained and Niki Lauda was given a position on the board of Air Berlin 61 Air Berlin announced on 19 December 2011 that the Abu Dhabi airline Etihad Airways had increased its share of Air Berlin from 2 99 to 29 1 for a sum of 73 million euros making Etihad the company s largest shareholder 62 The deal supplied more cash to Air Berlin and provided Etihad access to Air Berlin s European network 62 2012 2015 Restructuring amid continuing losses Edit Air Berlin aircraft at Terminal C of Berlin Tegel Airport in September 2014 The cooperation of the frequent flyer programs topbonus and Etihad Guest was announced in March 2012 63 In June 2012 the collaboration concluded with the bonus programs airberlin business points and Etihad Airways Business Connect for SMBs 64 On 20 March 2012 the entry into Oneworld was officially completed 65 The Oneworld network offered over 800 destinations in 150 countries 66 At the same time the airline introduced the Platinum status for its frequent flyer program topbonus 67 In May 2012 Air Berlin presented its new fare structure Your Fare including Just Fly Fly Classic and FlyFlex for flights from 1 July 2012 68 On 11 May 2012 Air Berlin opened its triweekly non stop flight from Berlin to Los Angeles in the summer schedule a destination which until then had only been served from Dusseldorf 69 On 18 December 2012 Air Berlin announced that topbonus its frequent flyer program would be sold to Etihad Airways only a 30 percent minority share would be retained 70 Air Berlin also announced the expansion of the existing codeshare agreement with Etihad Airways on 20 December 2012 71 In January 2013 the first Airbus A330 200 was introduced with a new business class which enabled a fully flat position for the first time 72 On 7 January 2013 Air Berlin appointed Austrian Wolfgang Prock Schauer former Chief Strategy and Planning Officer as the company s CEO replacing Hartmut Mehdorn 73 Air Berlin started flights between Berlin and Chicago on 23 March 2013 It cancelled the seasonal non stop flights to Las Vegas San Francisco and Vancouver 74 In March 2013 Air Berlin announced the closure of its seasonal hub for leisure destinations at Nuremberg Airport Only ten year round direct routes remained 75 On 24 September 2014 Air Berlin cancelled the remaining 15 orders for their Boeing 787s as well as 18 remaining orders for Boeing 737 800s as part of their restructuring programme 76 In October 2014 the Luftfahrt Bundesamt denied Air Berlin authorization to operate 34 routes as a codeshare with co owner Etihad from the 2014 2015 winter schedule as they would contravene the bilateral traffic rights between Germany and the UAE 77 Also in October 2014 Air Berlin announced the termination of flights to Palma de Mallorca from both Bremen Airport and Dortmund Airport therefore withdrawing entirely from these two German airports 78 Air Berlin announced a net loss for 2014 of 376m 316m loss in 2013 The airline s revenues in 2014 stagnated at 4 16 billion 79 80 In September 2015 Air Berlin phased out the last Boeing 737 700s owned by the company The remaining aircraft of this type would operate on a wet lease basis from TUIfly until 2019 All Boeing 737 800s were to be phased out by 2016 as Air Berlin plans to focus their short and medium haul fleet on the Airbus A320 family to cut costs 81 In November 2015 Air Berlin announced the closure of its Palma de Mallorca Airport hub by ceasing all of the hub s seven Spanish domestic routes by 3 April 2016 82 83 Some days earlier the airline announced plans to add flights from Dusseldorf to Boston Dallas Fort Worth San Francisco and Havana by spring 2016 84 However the planned route to Dallas Fort Worth was cancelled a few weeks later due to low demand 85 On 30 December 2015 the administrative court in Braunschweig ruled in favour of the German civil aviation authority the Luftfahrt Bundesamt and against Air Berlin regarding some of their codeshare operations with Etihad Airways The shared sale and advertising of 31 out of 83 routes which were marketed by both were declared illegal and ordered stopped by 15 January 2016 as they were not covered by the bilateral air traffic agreement between Germany and the UAE The Luftfahrt Bundesamt had allowed these flights until a definite legal ruling was made 86 2016 2017 Restructuring efforts Edit In April 2016 Air Berlin announced a record loss of 446 million for 2015 the airline s revenues had decreased to 4 08 billion 87 Amongst the reasons considered for Air Berlin s poor performance were crippling debt of over 800m unclear and rapid strategy changes on routes and advertising several CEOs over recent years a five year plus delay to the new hub Berlin Brandenburg Airport failed negotiations to profit from lower fuel prices and the overall harsh competition in the airline industry 88 In July 2016 Air Berlin confirmed that it no longer owned any of the aircraft it operates having sold and leased back the last of the aircraft it had previously owned 89 A few weeks later it was reported that Air Berlin and Etihad Airways were in talks with Lufthansa regarding the latter s acquisition of some of Air Berlin s routes outside of the Berlin and Dusseldorf hubs as well as some staff and aircraft leases 90 Also in July 2016 Air Berlin announced the increase of flights to the United States from 55 to 78 nonstops per week for 2017 Besides some frequency increases Los Angeles and San Francisco were to be served from Berlin as well as by the then existing Dusseldorf routes And a new Dusseldorf Orlando route was announced 91 A few days later the airline announced the introduction of a business class on its short and medium haul flights 92 In December 2016 Air Berlin announced Stefan Pichler s departure after serving two years as CEO and replacement by former head of Germanwings Thomas Winkelmann on 1 February 93 The new Air Berlin project Edit On 28 September 2016 Air Berlin announced The new airberlin a restructuring project including the reduction of its destinations from around 140 to 70 the focus on the Berlin and Dusseldorf hubs and on the smaller bases in Stuttgart and Munich the closure of six other bases the targeting of business travellers focus on domestic German flights and on flights to Italy Scandinavia and eastern Europe the expansion of its long haul network and the loss of up to 1 200 jobs 94 Air Berlin including its subsidiaries Belair and Niki planned to cut 40 of its fleet of 118 narrowbody jets leaving Air Berlin with its own fleet of 75 aircraft The new fleet would be 17 Airbus A330 200 for long haul operations and 40 Airbus A320 family aircraft and 18 Bombardier Q400 aircraft for European routes 94 95 A separate tourist destination oriented unit with 35 aircraft was to be formed perhaps operating with a partner TUIfly was the assumed partner as they already operate several aircraft for Air Berlin 96 or sold altogether 94 Plans to wet lease the remaining aircraft were realised with the December 2016 announcement that 38 Airbus A319 A320 aircraft would be wet leased to Lufthansa Group s Eurowings 33 aircraft and Austrian Airlines five effective February 2017 for a period of six years 97 In October 2016 Air Berlin announced plans to close four of its seven airberlin Technik maintenance facilities and lay off 500 of their staff 98 On 5 December 2016 Air Berlin announced plans to sell its entire 49 percent stake in its Austrian subsidiary Niki to its own minority owner Etihad Airways 99 100 It was also announced that Niki will take over several routes to southern European north African and Turkish leisure destinations from Air Berlin as part of the new joint venture 100 Also in December 2016 Air Berlin announced the transfer of its entire fleet of 21 A321 200s to Niki and Niki s transfer of all its 5 A319 100s and 13 A320 200s to Air Berlin 101 Air Berlin would discontinue its wet lease with TUIfly 101 In January 2017 Air Berlin announced that for summer 2017 most leisure routes were to be either transferred to Niki or cancelled altogether and that some domestic and European city routes were to be dropped leaving little more than the Berlin Tegel and Dusseldorf hub operations 102 On 28 April 2017 a loss of 781 9 million was announced for 2016 from a revenue of 3 79 billion 1 Also in late April 2017 Air Berlin confirmed the creation of Air Berlin Aeronautics GmbH a new subsidiary which was to have its own operational licence AOC to take over the wet lease operations handled by Air Berlin on behalf of Eurowings and Austrian Airlines Therefore the actual Air Berlin would focus on operations under its own brand name 103 In May 2017 Air Berlin announced it would buy Luftfahrtgesellschaft Walter entirely in which it had a controlling stake since 2009 104 Bankruptcy Edit After Etihad stopped financial support Air Berlin entered insolvency procedures on 15 August 2017 105 On 9 October 2017 Air Berlin told its staff that it would cease all remaining operations under its own AB flight numbers due to its negative financial outlook and bankruptcy proceedings 106 On 12 October 2017 Lufthansa agreed to buy 81 aircraft and employ 3 000 Air Berlin employees for 210 million taking over the subsidiaries Niki and Luftfahrtgesellschaft Walter with a total of 1700 employees On 24 October 2017 the Berliner Zeitfracht Group confirmed it would take over the Leisure Cargo Dusseldorf company and its 60 employees The creditors committee approved a corresponding submission Leisure Cargo conveys freight space on passenger flights 107 On 27 October 2017 it was announced that a consortium of maintenance repair and operations provider Nayak Aircraft Services GmbH amp Co KG and Berliner Zeitfracht Group would purchase airberlin Technik keeping over 300 employees 108 The final long haul flight from Miami to Dusseldorf was operated on 15 October 2017 109 On 27 October 2017 Air Berlin s final flight was operated by Airbus A320 D ABNW It departed from Munich at 21 36 and landed at Berlin Tegel at 22 45 110 On 28 October 2017 it was announced that EasyJet would absorb 1 000 employees and lease 25 Airbus A320 aircraft for flights from Berlin Tegel for 40 million 111 Corporate affairs Edit Air Berlin headquarters at the Airport Bureau Center in Charlottenburg Wilmersdorf Berlin Ownership Edit Air Berlin PLC shares were publicly traded on Xetra and on the Frankfurt Stock Exchange in the regulated market Trading in the regulated unofficial market occurred at the exchanges in Berlin Dusseldorf Hamburg Munich and Stuttgart 112 Since December 2011 Etihad Airways was the largest shareholder in Air Berlin As of December 2015 the major shareholders over 5 were 87 Name InterestEtihad Airways PJSC 29 21 ESAS Holding AS owners of Pegasus Airlines 12 02 Other shareholders 58 77 Total 100 00 Business trends Edit Stefan Pichler CEO of Air Berlin from 2016 to February 2017 Air Berlin was loss making for several years The key figures for the whole Air Berlin Group including Niki for the full years of operation leading up to its closure were as at year ending 31 December 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Turnover m 1 575 2 537 3 401 3 240 3 850 4 227 4 312 4 147 4 160 4 081 3 785Net profit m 40 1 21 0 75 0 9 5 106 3 420 4 6 8 315 5 376 7 446 6 781 9Number of employees 4 108 8 360 8 311 8 278 8 900 9 113 9 284 8 905 8 440 8 869 8 481Number of passengers m 19 7 27 9 28 6 27 9 34 9 35 3 33 3 31 5 31 7 30 2 28 9Passenger load factor 75 3 77 3 78 4 77 5 76 8 84 5 83 6 84 9 83 5 84 2 84 3Number of aircraft at year end 117 124 125 152 169 170 155 140 149 153 144Notes sources 113 114 115 116 117 118 119 120 79 87 121 Flight school Edit Air Berlin trained its own pilots since 2007 in a joint venture with the TFC Kaufer flight school Commercial pilot training lasted around 24 months The Air Berlin flight school was the first flight school in Germany to be awarded a training licence by the German Department of Aviation for the new Multi Crew Pilot Licence concept in February 2009 122 Technical services Edit Air Berlin had its own maintenance and overhaul branch airberlin technik with facilities in Berlin Dusseldorf Munich Stuttgart Frankfurt Hamburg and Nuremberg which employed 1300 staff as of October 2016 98 The technical branch was a certified EASA Part 145 maintenance organization with approximately 1200 employees providing services to both Air Berlin group aircraft and customers throughout Europe airberlin technik was recognized and approved by various National Airworthiness Authorities such as USA FAA 145 Canadian CAA 145 Aruba EASA 145 Federal Aviation Authority of Russia GCAA United Arab Emirates 123 In October 2016 Air Berlin announced it would close the technical bases in Stuttgart Frankfurt Hamburg and Nuremberg while laying off 500 staff due to restructuring measures 98 Destinations EditPrior to its shutdown Air Berlin flew to scheduled year round and seasonal destinations in Europe 124 Codeshare agreements Edit Air Berlin codeshared with the following airlines 125 Air Serbia Air Seychelles airBaltic Alitalia American Airlines Austrian Airlines Bangkok Airways British Airways Bulgaria Air Czech Airlines Darwin Airline Etihad Airways Eurowings Finnair Flybe Hainan Airlines Iberia Japan Airlines Jet Airways Lufthansa Meridiana Niki Pegasus Airlines Royal Jordanian S7 Airlines SriLankan Airlines Swiss International Air Lines Virgin AustraliaFleet EditLatest fleet Edit Air Berlin Airbus A320 200 Air Berlin Airbus A330 200 Air Berlin Bombardier Dash 8 Q400 Between 2004 and 2009 Air Berlin operated the Fokker 100 Most of them were leased from Germania 18 At the time of closure Air Berlin s fleet comprised the following aircraft citation needed Aircraft In service Passengers NotesC W Y Y TotalAirbus A319 100 11 4 146 150 Leased to Eurowings Airbus A320 200 64 165 165 21 leased to Eurowings 4 176 180Airbus A330 200 17 19 271 290Bombardier Dash 8 Q400 20 3 70 73 Operated by LGW Total 112Historic fleet Edit During its 40 years of operation Air Berlin operated the following aircraft types 126 Aircraft Total Introduced Retired NotesAirbus A319 100 21 2006 2017 Operated for Eurowings Airbus A320 200 117 2005 2017 10 acquired from LTU 17 operated for Eurowings 4 operated for Austrian Airlines 27 purchased by Lufthansa 25 transferred to easyJet Airbus A321 200 23 2008 2017 4 acquired from LTU Airbus A330 200 17 2008 2017 8 acquired from LTU 6 leased by Malaysia Airlines 10 sold to other airlines 1 stored in LDE Airbus A330 300 3 2008 2013 Acquired from LTU British Aerospace BAe 146 200 3 2003 2004Boeing 707 123 1 1980 1980 Operated by Air Berlin USA Boeing 707 321 1 1981 1981Boeing 707 331 3 1979 1981Boeing 737 200 5 1980 1986 Operated by Air Berlin USA Boeing 737 300 1 1986 1990 Operated by Air Berlin USA 10 2007 2010 Operated by Germania Boeing 737 400 13 1990 2007Boeing 737 700 32 2003 2017 Operated by TUI fly Deutschland Boeing 737 800 100 1998 2017 Last remaining active fleet was operated by TUI fly Deutschland Bombardier Dash 8 Q400 20 2008 2017 Operated by LGW Embraer 190 3 2013 2013 Transferred from Niki and subsequently returned were operated by LGW Fokker 100 18 2004 2010Services EditAircraft cabins Edit Air Berlin Airbus A319 100 cabin Former Air Berlin long haul business class cabin Long haul flights Edit Air Berlin long haul aircraft featured business and economy class sections At the beginning of 2012 Air Berlin started the renewal of its long haul cabin equipping both economy class and business class with new seats and a new in flight entertainment system Fully automatic seats that could tilt up to 170 degrees were provided in business class along with an anti thrombosis edition and an adjustable headrest and more legroom and a narrower seat back in economy class All seats have an 8 9 inch monitor with a touch screen and offer movies series music audiobooks and games 127 In January 2013 the airline again presented a new business class which replaced the one introduced a year earlier The new business class had single seats offering travellers even more privacy The new seats had a full flat function a massage function and featured a 15 inch monitor 72 Short and medium haul flights Edit Business class was not offered on its short and medium haul flights until Air Berlin announced its introduction in August 2016 All short and medium haul aircraft began to feature business class in row 1 with expanded services including an empty middle seat 92 Passenger services Edit Air Berlin check in counters In contrast to European pure low cost carriers Air Berlin offered free in flight snacks and drinks until September 2016 128 Newspapers and magazines were available on domestic German flights 129 Full hot meals were complimentary on long haul flights On all Air Berlin routes with a flight time of 60 minutes or longer gourmet meals were offered which were according to the airline created by chefs at Sansibar a famous restaurant on the island of Sylt The airline also offered in flight entertainment assigned seating and guaranteed flight connections 130 Air Berlin s basic fares were nonrefundable and not changeable so unused flights were a complete loss for the purchaser Frequent flyer program Edit Air Berlin s frequent flyer program was called topbonus Points known as miles could be collected on flights operated by Air Berlin Niki Oneworld airline partners and selected other airlines Accrued miles could be redeemed for award flights or for an upgrade to business class In addition to the entry level topbonus Card Classic there were cards with Silver Gold and Platinum status corresponding to Oneworld Ruby Sapphire and Emerald statuses A Service Card and a Credit Card for which a charge was made were also available Etihad purchased a 70 stake in topbonus for 184 million in 2012 Following the insolvency of Air Berlin topbonus also filed for insolvency on 25 August 2017 131 See also EditList of airlines of Germany List of companies of Germany Transport in GermanyNotes EditNotes holder of supplemental air carrier certificate authorised to operate non scheduled passenger and cargo services to supplement the scheduled operations of certificated route air carriers the United States supplemental carrier industry associationCitations EditReferences Edit a b airberlin IR Information concerning the FY 2016 and Q1 2017 results ir airberlin com 28 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streicht Gratis Snacks und Getranke Economy Class on short amp medium haul flights airberlin com www airberlin com Air Berlin Service on board Air Berlin Archived from the original on 28 August 2012 Retrieved 19 January 2011 Bryan Victoria 25 August 2017 Air Berlin frequent flyer programme files for insolvency Reuters Retrieved 3 September 2017 Bibliography Edit Berlin Airport Company Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports several issues German language edition only 1968 1992 West Berlin Germany Berlin Airport Company Flight International Flight International Marketing Stories Sutton UK Reed Business Information ISSN 0015 3710 various backdated issues relating to Air Berlin 1979 2007 Airways A Global Review of Commercial Flight The Two Faces of Air Berlin pp 30 35 Airways A Global Review of Commercial Flight Sandpoint ID US Airways International Inc 17 9 November 2010 ISSN 1074 4320 External links Edit Media related to Air Berlin at Wikimedia Commons Official website Official Air Berlin information about their bankruptcy in German and English Portals Germany United States Companies Aviation Retrieved from https en wikipedia org w index php title Air Berlin amp oldid 1162058890, wikipedia, wiki, book, books, library,

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