Etihad Airways today welcomed airberlin’s decision to accelerate structural change within the airline to target sustainable profitability.
airberlin announced a strategic review of its long-term business model as it reported its 2013 annual financial results. The predominant objective will be to restructure the airline and shape a robust business model that is fit for purpose in today’s competitive market conditions. For this purpose airberlin will strengthen its management board with the appointment of a Chief Restructuring Officer.
In support of this restructuring, Etihad Airways will subscribe to a €300 million eight per cent perpetual subordinated cumulative convertible guaranteed bond. This will form part of a recapitalisation which is intended to strengthen and assist in the reorganisation of airberlin’s capital structure and secure the improved long-term prospects for the business and its stakeholders. Etihad Airways’ stake in airberlin will remain unchanged at 29.21 per cent. airberlin will issue a further bond of a minimum of €150 million for general corporate financing purposes.