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German court rules against Etihad-Air Berlin cargo code share deal
A COURT in the German state of Lower Saxony has ruled against extending 31 of Abu Dhabi's Etihad Airways' winter 2015/16 code-shared routes with partner Air Berlin.
Etihad said it will appeal the ruling this week.
Etihad, which owns a 30 per cent stake in Germany's second largest carrier, said the move could cause severe financial damage to the floundering Air Berlin.
The agreement had allowed Air Berlin to offer long-haul service and, at the same time, gave Etihad valuable access to German air hubs. Revenue from the agreement is worth US$153.4 million, reports the Wall Street Journal.
The two non-stop routes that may be affected are Abu Dhabi to Stuttgart, and Abu Dhabi to Berlin-Tegel, said ch-aviation. Under the court order, Etihad and Air Berlin must stop the flights beginning January 16, carrying through the end of the current winter schedule, which ends March 26.
Previously booked code-share flights will operate as planned, Air Berlin said. Another 50 routes that the carriers offer on a code-sharing basis are unaffected by the ruling.
"Etihad Airways is deeply disappointed by the court's decision," said Etihad CEO James Hogan. "The social and economic damage to Germany by this decision is significant."
The German transport ministry filed a case against Air Berlin and Etihad, questioning the legality of the 31 routes and claiming that the partnership wasn't covered under a bilateral air-services agreement with the United Arab Emirates.
An Air Berlin union has warned that without the agreement, the future of Air Berlin, as well as 8,000 jobs, are at risk. The UAE General Civil Aviation will meet soon with Etihad Airways to discuss the issue and whether or not the government should step in.
Etihad said it will appeal the ruling this week.
Etihad, which owns a 30 per cent stake in Germany's second largest carrier, said the move could cause severe financial damage to the floundering Air Berlin.
The agreement had allowed Air Berlin to offer long-haul service and, at the same time, gave Etihad valuable access to German air hubs. Revenue from the agreement is worth US$153.4 million, reports the Wall Street Journal.
The two non-stop routes that may be affected are Abu Dhabi to Stuttgart, and Abu Dhabi to Berlin-Tegel, said ch-aviation. Under the court order, Etihad and Air Berlin must stop the flights beginning January 16, carrying through the end of the current winter schedule, which ends March 26.
Previously booked code-share flights will operate as planned, Air Berlin said. Another 50 routes that the carriers offer on a code-sharing basis are unaffected by the ruling.
"Etihad Airways is deeply disappointed by the court's decision," said Etihad CEO James Hogan. "The social and economic damage to Germany by this decision is significant."
The German transport ministry filed a case against Air Berlin and Etihad, questioning the legality of the 31 routes and claiming that the partnership wasn't covered under a bilateral air-services agreement with the United Arab Emirates.
An Air Berlin union has warned that without the agreement, the future of Air Berlin, as well as 8,000 jobs, are at risk. The UAE General Civil Aviation will meet soon with Etihad Airways to discuss the issue and whether or not the government should step in.
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