Air Berlin, Germany’s second-biggest airline, is in bankruptcy, and a Monday meeting of its board will determine its final fate. Most of the bids that have been submitted involve breaking up the company.
The airline, which had lost money for several years, was pitched into bankruptcy this summer when its largest stockholder, Etihad Airways, refused to put in more money. Air Berlin has 8500 employees, 140 planes, and many valuable landing spots at crowded airports.
While a few bids may be for the entire airline—one investor has published a €500 million offer—most center on the planes and the landing slots, which may be worth more separately than the entire operating business, which has already cut back North American flights, and is flying now only on a last-minute loan from the German government.
Lufthansa, which earlier this year leased 38 of Air Berlin’s planes is believed interested in up to 90; Thomas Cook is behind a bid for another 38 planes. Other potential bidders include TUI and the operator of a Chinese-owned cargo airport in Germany, as well as EasyJet. Ryanair was originally interested, but said, at least publicly, that it would not bid because it believes there’s a ‘fix’ in for Lufthansa.
