Subscribe Free
in Business & Finance

Etihad Airways launches legal appeal to protect Airberlin investment

Posted 4 January 2016 · Add Comment

Etihad Airways today launched fresh legal action in a bid to overturn a German court's decision to revoke the approval for 29 of its codeshare flights with airberlin.

Last week, the Administrative Court of Braunschweig decided that the German Ministry of Transport was entitled to reject the 29 Etihad Airways - airberlin codeshares, which had been approved only until 15 January 2016.‎ 

As the notice of appeal was filed in the higher administrative court in Lüneburg today, Etihad Airways president and chief executive officer, James Hogan, reiterated the airline’s unwavering support for airberlin, saying it remained committed to the German carrier, to competition and to consumer choice for German travellers. 

He said: “With airberlin, we are working to ensure that no traveller suffers as a result of this dispute, and all bookings will be honoured.  We will fight all the way to protect our investment, to protect our partnership with airberlin and to protect competitive choice in German air travel.”

Hogan said Etihad Airways’ commitment to airberlin was in stark contrast to the lack of support demonstrated by the German Ministry of Transport for a proud German airline. 

Etihad Airways took a 29.2 per cent stake in airberlin in 2011, following encouragement from German regional and national Government representatives. The airlines had approval for codeshare services on a total of 63 air routes, providing German travellers with new choices to destinations around the world. In the summer of 2014, the German Ministry of Transport raised concerns about 29 of the codeshares, based on lobbying by Lufthansa, and in November 2015 only approved the 29 codeshares until 15 January 2016. The remaining codeshares remain unaffected. 

Hogan said: “Together, airberlin and Etihad Airways have created new competitive choice for German travellers, based on codeshare services to international destinations that have operated for years without any concerns being raised as they are pro-competitive and increase consumer choice.  That was entirely correct, given that they meet the terms of the air services agreement between Germany and the UAE – a fact confirmed not just by our own legal team and expert advisors but by a former Director-General of Civil Aviation for Germany. 

“Now, after four years of investing in Germany, supporting airberlin jobs as well as creating our own new employment in Germany, we find the rules have changed.

“As a global business, we focus our investments in markets which will deliver long-term returns. We were encouraged to invest in airberlin. However, since that initial investment, we have faced a series of significant challenges, including the introduction of airport taxes, which have directly eroded airberlin’s profitability. 

“In other markets, such as Australia, India, Italy, Serbia and the Seychelles, our investments have been welcomed and supported. Yet in Germany, our commitment continues to be undermined by the lobbying efforts and protectionist tactics of Lufthansa, the national airline. 

“Unless the German government can show its commitment to support all German companies and German jobs, its reputation as a safe country in which to invest is at stake. Investors need every reassurance that the integrity of their investments in Germany will be respected and protected. 

“Etihad Airways is but one investor in one industry.  But our experience will serve as a warning to others when it comes to making international investment decisions. Make no mistake. Protectionism will undoubtedly harm the investment landscape in Germany.”

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Operations from the ground up

Keith Mwanalushi looks at the expansion of ground support operators and equipment in the Middle East region as the pressure mounts to remain competitive and maintain commercial viability.

Emirates announces A380 service to Nice and adds Monaco transfers by helicopter

Emirates Airlines has launched a daily A380 service to Nice, gateway to the French Riviera and Provence. The daily A380 service will start on July 1, 2017.

Etihad Airways and Norlands celebrate the 2000th Flying Nanny

Etihad Airways has celebrated the graduation of its 2000th Flying Nanny, continuing its relationship with Norland, the respected UK-based higher education college which specialises in 'early years' education.

UK bans passengers from Queen Alia Airport from carrying laptops, tablets and large phones

The UK authorities issued new rules that ban passengers on flights from Queen Alia International Airport and other airports in the region departing to London from carrying laptops and tablets in the aircraft cabin, in addition to the

Emirates expects busy spring break travel period

Emirates expects high passenger traffic on its flights this upcoming weekend starting from Thursday 23rd March as travellers head abroad for spring and holiday break. Over 89,000 travellers will be passing through Emirates Terminal 3

Qatar Airways welcomed Orbis Flying Eye Hospital to Doha

Qatar Airways welcomed Orbis Flying Eye Hospital to Doha with an official reception at Doha International Airport (DIA).

TAA
See us at
EBACE17 BT0103240517Aeropodium BT2802240417Kuwait APADS BT1602270317