Air Berlin… Hit Or Miss?

On August 15th, Germany’s second largest airline, had filed for bankruptcy. Is there still hope for this airline? Is it on its finals to failure? Read on to find out!

Basic Facts

Air Berlin was created in July, 1978. Aged 39 as of now, it will be “celebrating” its 40th anniversary next year. Which is slightly ironic. Their first ever planes that they acquired where 2 B707s. The current fleet consists of 11 A319-100s, 64 A320-200s, 6 A321-200s, 17 A330-200, and 20 Bombardier Dash Q400. Right now, they have ordered 2 A330-900neos. But with the current state of the company… it’s not looking very likely that those aircraft will see the light of day (with Air Berlin anyway)

img_3773.jpg
Air Berlin Bombardier Dash Q400

So What Happened?

Air Berlin have been on the decline for many years. Their golden years where 2010-2011, where they saw a growth of 20.4% in passengers from the previous year of a growth of -3.9%. The largest amounts of passengers ever was in 2011, when they transported roughly 35.3 million people. So far this year, as of the 28th of August. They have transported a total of 27.2. The last time they came close to this number, was back in 2009, when they transported 27.9 million people. The numbers are really not very promising…

The Main Reason…

On of the finishing blows that hit Air Berlin was the fact that Etihad Airways dissolved  the partnership with Air Berlin. Meaning no more cash injections, their last cash injections from Etihad was a large sum of 227 million pounds. Since then Etihad have refused another cash injection request. The net income is -781.9 million and revenue by -3.79 billion. All in all, there are 2 main reasons… 1) No more cash injections 2) Not enough flights being sold.

n (1 of 1)-47
Air Berlin Bombardier Dash Q400 Arriving At Geneva Airport

How will this affect you?

Unless you are art of Air Berlin’s Top Bonus Frequent Flyer Program, your probably wont be affected. Even if you have booked with them for the future. don’t worry. The German Government has leased a 138 million pound loan, enough to maintain flight operation for another 3 months. Now let’s get into what will happen if you do have a membership… If you have any air miles with Air Berlin, they will just disappear. So my recommendation is to use them before time runs out…

Is There Any Hope?

As of now, it’s not looking very good for this German Airline. However, Lufthansa IS looking to control part of Air Berlin. They also leased roughly 38 A319/A320s to Lufthansa and its subsidiaries. Including the cabin and cockpit crew. This could help Air Berlin. As less aircraft to maintain equals less expense, this also means that jobs are not lost…

IMG_3557
Austrian Airlines is one of the Airlines that Air Berlin has leased aircraft to…

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create a free website or blog at WordPress.com.

Up ↑

%d bloggers like this: