Air Berlin facing shakeup

Air Berlin facing shakeup
By admin


Germany's second-biggest airline Air Berlin is planning major changes after the company posted another net loss for 2013.

The loss-making and debt-ridden airline has said it will boost its capital by 450 million euros ($A677.40 million) by issuing two bonds.

Its main shareholder, Abu Dhabi-based airline Etihad, will alone provide 300 million euros by subscribing to bonds convertible into Air Berlin shares.

Air Berlin also plans to come up with a new strategy in the coming months.

"I don't want to give the impression that we will go on like that," chief executive Wolfgang Prock-Schauer said in a telephone conference on Monday.

He pledged to come up "soon" with "a concept" that will allow the airline to "position itself sustainably into profitable territory".

"We have to come up with fundamental changes," he said without adding further details.

Air Berlin posted a net loss of 315.5 million euros last year, its fifth loss in the past six years.

Investors had been speculating on Etihad increasing its 29 per cent stake in Air Berlin, and even a possible tie-up with Alitalia.

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