Airberlin to cease operations end of October

Bankrupt German carrier airberlin will cease operations Oct. 28 and employees are not guaranteed jobs under any future owner, the airline warned Monday.

In an Oct. 9 letter to employees, airberlin chief representative Frank Kebekus said a social plan had been launched, but not every airberlin employee would be able to get a job with those companies bidding to take over parts of the airline. There could be at least 1,400 job losses, mostly among ground and administration staff, he said.  

Airberlin is in negotiations with a shortlist of bidders that includes Lufthansa Group, owner of German LCC Eurowings, and UK LCC easyJet.“We have been negotiating intensively for weeks. In a few days we will know more,” Kebekus said.

But he warned that to continue airberlin operations while it loses money and is going through the insolvency process was not possible; operations under the IATA AB code will cease on Oct. 28. “This is why we have asked the personnel representatives and the general works council of airberlin Luftverkehrs KG to start negotiations on a compensation and social plan,” Kebekus said.

Meanwhile, German news TV N24 reported that talks with easyJet are at risk of falling apart because the UK LCC has reduced its offer, believed originally to be €50 million ($57 million) for up to 30 airberlin Airbus A320s and routes in and out of Berlin. Airberlin did not respond to a request for comment on the situation.

Airberlin filed for insolvency Aug. 15 after Etihad Airways, which owns a 29.2% stake in the carrier, ended further financial support.