On Monday 4 September, the European Commission cleared a bridging loan of €150 million provided by the German authorities to Air Berlin, to organise the orderly liquidation of the company.
Following the withdrawal of the financial support of Ethiad, Air Berlin's largest shareholder, the German authorities notified the Commission on 15 August of their plans to grant bridge financing of up to €150 million over the coming months to the loss-making airline. This measure aims to ensure that the German company may continue its operations during negotiations to sell off its assets, after which Air Berlin will cease activities and withdraw from the market.
The Commission examined the measure with regard to the 2014 guidelines for rescue and restructuring state aid to companies in difficulties. These allow member states to support struggling companies if the aid is limited in time and scope and as long as they contribute to an objective of common interest.
The Commission noted that the loan would be granted in stages and subject to strict conditions: in particular, the company must justify its cash needs each week and the loan will be paid back in full, or the company must present a liquidation plan. It therefore considered that these conditions would reduce potential competition distortions as a result of the state aid to a minimum. It also concluded that the measure would help to protect the interests of passengers and maintain their transport services.
The European Commission therefore concluded that the support measure was compatible with EU State aid rules. (Original version in French by Lucas Tripoteau)