The European Commission has approved, under EU state aid rules, Germany’s plans to grant Air Berlin a temporary €150 million bridging loan. The measure will allow for the orderly winding-down of the insolvent airline without unduly distorting competition in the Single Market.
On 15 August, Germany notified the Commission of its intention to grant a bridging loan to Air Berlin. This followed on from the withdrawal by Etihad, Air Berlin’s main shareholder, of its financial backing for the loss-making company. The German public credit institution KfW will provide a credit facility of up to €150 million to Air Berlin over the next months.