airberlin flies deeper into the red despite oneworld and Etihad ties

The airberlin-Etihad Airways rumor mill has been working overtime in recent weeks with German publication Manager Magazin reporting that Etihad CEO James Hogan is seeking to replace airberlin Group CEO Hartmut Mehdorn as soon as possible due to the continuing poor financial performance of the company and the slow pace of restructuring. Abu Dhabi-based Etihad increased its shareholding in Air Berlin PLC from 3% to 29.21% in Dec-2011, becoming the company's largest single shareholder.

airberlin reported a consolidated net loss of EUR66.2 million in 2Q2012, a 53% deepening of the EUR43.9 million deficit posted in the year-ago period. The company intends to sell eight aircraft to help cut debt by EUR300 million by the end of 2012 and improve its liquidity position and equity ratio. airberlin's shareholders equity amounted to just EUR101.3 million as of 30-Jun-2012 and the equity ratio stood at just 4% as compared to 11.2% on 30-Jun-2011.