Etihad Airways backs Airberlin's accelerated fundamental restructuring programm

Etihad Airways 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 €300m 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%. airberlin will issue a further bond of a minimum of €150m for general corporate financing purposes. airberlin reported operating losses for the year ended at December 31, 2013 of -€231.9m. The German carrier was successful in reaching its €200m cost reduction and revenue contribution target for the year, achieving key elements of its ‘Turbine’ turnaround program and reducing available seat kilometres, a key measure of capacity, by 5.1%. Business and cost synergies achieved with Etihad Airways played an important part in these savings.