Print Edition - 2017-09-17 | MONEY
‘Lively’ investor interest in Air Berlin: CEO
Sep 17, 2017-
Bidding ended on Friday for bankrupt Air Berlin, after a raucous battle for Germany’s second-largest airline that could see the carrier broken down for parts.“The lively interest from investors speaks well for Air Berlin,” chief executive Thomas Winkelmann said, as the firm announced “several” bids had arrived before the deadline.
Some 8,500 employees, 140 aircraft and a string of precious landing slots at German airports are in the sights of potential buyers, who range from airline behemoth Lufthansa to maverick challengers like Austrian Formula One legend Niki Lauda. “We will make sure to reach the best solution for the firm and its employees as we examine the offers” ahead of a decision at a September 25 board meeting, Winkelmann said.
“Our goal is to bring as many jobs as possible to safe harbour.”
Air Berlin carried 36 million passengers in 2016 but has long struggled for survival, booking losses amounting to 1.2 billion euros ($1.4 billion) over the past two years.
After main shareholder Etihad Airways withdrew its financial support in mid-August, the airline triggered bankruptcy proceedings and gave potential buyers a month to submit offers for its assets.
Economy Minister Brigitte Zypries declared that “no one company will be able to buy Air Berlin for competition reasons”.
Lufthansa, by far Germany’s biggest carrier, appears hungry for Air Berlin’s planes.
It already leases 38 aircraft from its smaller competitor, and could be interested in up to 90, according to media reports.
Michael O’Leary, outspoken chief executive of Ireland’s no-frills carrier Ryanair, called a stormy Berlin press conference two weeks ago to denounce a German “stitch-up” in favour of Lufthansa. He told journalists he would not be joining the fray—although some analysts thought the wily businessman might be bluffing.
Meanwhile, Bavarian aviation investor Hans Rudolf Woehrl has already published a 500-million-euro offer to buy Air Berlin as a whole entity—and invited his rivals to team up with him on the offer. And Austrian Formula One champion Niki Lauda announced a bid with Thomas Cook Wednesday to buy 38 Air Berlin planes, along with those belonging to the airline’s low-cost subsidiary that bears his first name.
Britain’s low-cost EasyJet confirmed Friday it too had made an offer, while press reports suggested others would come from tourism operator TUI, the Chinese owner of Parchim cargo airport in northeast Germany Jonathan Pang, and Utz Claassen, the former head of German power supplier EnBW.
Air Berlin boss Winkelmann—a former Lufthansa executive—has admitted to talks with around 10 potential investors even before the deadline passed. But pilots added a spate of turbulence to the final approach, staging a two-day “sick-out” this week that saw some 300 flights cancelled and left more than 10,000 furious passengers waiting to find out if they will be compensated. Aircrew were “playing with fire” with their protest, which had cost the company “several million euros”, CEO Winkelmann charged.
But Germany’s giant services sector union Verdi expressed solidarity with the protest action.
“All the conversations surrounding insolvent Air Berlin are always about its economic interests, never about the jobs of its more than 8,000 employees,” said Verdi board member Christine Behle on Tuesday. Insolvency administrators and executives fear one thing above all: dissolution of the company, which is out of cash and running on fumes.
Published: 17-09-2017 08:00