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Etihad Airways launches legal action in Germany

Cape Town - Etihad Airways, the national airline of the United Arab Emirates (UAE), launched fresh legal action on Monday in a bid to overturn a German court’s decision to revoke the approval for 29 of its codeshare flights with airberlin.

Etihad Airways President and CEO 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.

“With airberlin, we are working to ensure that no traveller suffers as a result of this dispute, and all bookings will be honoured," said Hogan.  

“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.”

Etihad Airways took a 29.2% 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.

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.

“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," said Hogan.

“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."

He said as a global business, Etihad Airways focuses its 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," said Hogan.

“In other markets, such as Australia, India, Italy, Serbia and the Seychelles, our investments have been welcomed and supported. 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."

In his view protectionism will harm the investment landscape in Germany.

Etihad Airways also announced on Monday an agreement with Luggage Logistics to transform the end-to-end baggage management process across the airline’s global airport network.

According to Etihad, Luggage Logistics’ advanced Baggage Management System (BMS) will enable the airline to significantly improve the delivery of luggage to destinations on-time. It will also help the airline to easily track where bags are at any point along the journey throughout its global operation.

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