Air Berlin
Air Berlin was a major German airline that grew from a West Berlin charter operator into the country's second-largest airline before becoming insolvent and ending commercial flights in 2017.
Last updated August 21, 2026
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Overview
Air Berlin, commonly styled airberlin, was a German airline headquartered in Berlin. Founded in 1978 as Air Berlin USA, it was established by American aviation interests to operate charter flights from West Berlin at a time when the city's unusual political and air-access arrangements limited which airlines could serve it. The carrier initially focused on holiday traffic, particularly flights from Berlin Tegel to Mediterranean resorts, and began revenue operations in April 1979 with Boeing 707 aircraft. German reunification fundamentally changed the company's operating environment. In 1991, Air Berlin was reorganized as a German-registered company with German investors and moved under the leadership of Joachim Hunold, a former LTU executive. It began developing scheduled services alongside its charter activity and gradually broadened its network beyond holiday destinations. The airline's City Shuttle services connected secondary German airports with cities such as London, Barcelona, Milan, and Vienna. Unlike some low-cost competitors, Air Berlin combined comparatively low fares with features such as complimentary food and advance seat reservations, creating a hybrid or semi-low-cost positioning. During the 2000s, Air Berlin expanded rapidly through fleet purchases, acquisitions, codeshares, and investments in other airlines. It acquired dba in 2006 and leisure carrier LTU in 2007, giving it greater access to long-haul routes and Airbus wide-body aircraft. It also acquired substantial interests in Austrian carrier Niki and Swiss charter airline Belair, and entered commercial arrangements with TUI, S7 Airlines, American Airlines, British Airways, Finnair, and other partners. Air Berlin joined the Oneworld alliance in 2012. At its peak, it was Germany's second-largest airline after Lufthansa and ranked among Europe's largest carriers by passenger volume, with important bases at Berlin Tegel and Düsseldorf. The expansion created a broad but complex business with scheduled, leisure, charter, domestic, European, and long-haul operations. Air Berlin also faced intense competition from Lufthansa and expanding low-cost airlines, volatile fuel prices, high operating costs, and persistent losses. Etihad Airways became a major shareholder in 2011 and provided financial and strategic support, but the relationship did not restore sustainable profitability. Several restructuring efforts followed, including route reductions, aircraft changes, management turnover, and attempts to form deeper alliances or transactions with other airlines. In August 2017, after Etihad declined to provide further financial support, Air Berlin filed for insolvency protection. The German government provided a transitional loan that enabled flights to continue while assets and operating units were marketed. Lufthansa-related companies and easyJet subsequently agreed to take over portions of the fleet, routes, employees, and airport operations. Air Berlin's final scheduled flights operated in October 2017, after which the airline entered liquidation and its remaining assets and legal entities were wound down.
History
Air Berlin was created in 1978 as Air Berlin USA by American interests associated with Lelco, an Oregon agricultural company. Its purpose was to serve West Berlin, whose Cold War air corridors could be used only by airlines registered in the United States, France, or the United Kingdom. The airline was led in its founding period by aviation professionals including Kim Lundgren, John MacDonald, and Mort Beyer. After obtaining its operating license, it began flying from Tegel in April 1979, initially using Boeing 707 aircraft and concentrating on charter services for German tour operators. Boeing 737 aircraft later became the core of its fleet. German reunification removed the legal and commercial conditions that had protected the company's niche. In 1991, Air Berlin was reorganized into a German company with new German investors. Joachim Hunold, previously associated with LTU, became its principal executive and directed a shift toward scheduled passenger services. The airline expanded its network from Berlin and other German airports, adding holiday routes and direct-booking services. In 1997 it introduced scheduled flights to Mallorca and subsequently launched City Shuttle routes to destinations including London, Barcelona, Milan, and Vienna. This created a hybrid model that combined low fares with elements uncommon among budget airlines, including meals and seat selection. The company expanded aggressively in the 2000s. It acquired dba in 2006 and LTU in 2007, while also developing stakes or partnerships involving Niki, Belair, and TUI's German flight business. LTU brought long-haul aircraft and routes into the group, while other arrangements expanded access to Austria, Switzerland, Turkey, and additional European markets. Air Berlin formed codeshare relationships with airlines including S7 Airlines, American Airlines, British Airways, and Finnair. It joined Oneworld in 2012, seeking to strengthen its international connectivity and status as a network carrier. Growth came with significant structural complexity. Air Berlin operated a mixture of domestic, European, leisure, charter, and long-haul flying, while managing several brands and affiliated airlines. Its competitive environment deteriorated as Lufthansa defended its German position and low-cost airlines placed pressure on fares. Fuel costs, aircraft and route expansion, integration expenses, and weak profitability contributed to a prolonged deterioration in the company's finances. Etihad Airways acquired a significant stake in 2011 and became a key commercial and financial partner. Although the relationship provided support and access to Etihad's wider network, Air Berlin remained loss-making and heavily dependent on external financing. Management changes and restructuring efforts continued during the final years. The company reduced selected domestic and long-haul flying, consolidated technical services, and pursued possible alliances and transactions. In 2016 and 2017 it tried to reposition parts of its network and improve financial performance, but the underlying problems remained. When Etihad withdrew further support in August 2017, Air Berlin applied for insolvency protection. A government-backed bridging loan allowed the airline to continue flying temporarily while buyers were sought. Lufthansa-related companies agreed to acquire or lease parts of the operation, including aircraft and employees, while easyJet took over substantial operations connected with Berlin. Not every asset or liability transferred, and the transactions were subject to regulatory and legal processes. Air Berlin's final flights took place in October 2017. The brand ceased operating as an airline, and the remaining corporate entities entered liquidation and asset-disposal proceedings.
- 2017
Insolvency and shutdown
[1]Air Berlin files for insolvency in August and ends commercial operations in October.
- 2012
Oneworld membership
[1]Air Berlin joins the Oneworld airline alliance.
- 2011
Etihad becomes a major shareholder
[1]Etihad Airways acquires a significant interest and establishes a closer strategic relationship with Air Berlin.
- 2007
LTU acquisition
[1]The takeover of LTU gives Air Berlin a larger long-haul and leisure operation.
- 2006
Public listing and dba acquisition
[1]Air Berlin lists on the Frankfurt Stock Exchange and acquires German domestic carrier dba.
- 2002
City Shuttle launches
[1]Low-fare scheduled routes connect German airports with several major European cities.
- 1997
Scheduled services expand
[1]Air Berlin begins scheduled flights that can be booked directly with the airline, initially including Mallorca services.
- 1991
German restructuring
[1]The airline becomes German-owned and reorganizes as a German-registered company after reunification.
- 1979
First revenue flight
[1]Air Berlin begins commercial flying from Berlin Tegel to Palma de Mallorca.
- 1978
Air Berlin USA is founded
[1]American aviation interests establish the airline to operate charter services from West Berlin.
Products and positioning
A hybrid German carrier combining scheduled network flying, leisure and charter services, comparatively low fares, and selected full-service features such as meals and seat reservations.
Passenger air transport · 1997
Scheduled passenger services
Air Berlin's scheduled network connected German cities with European destinations and, through LTU and other operations, selected long-haul markets. The airline sold tickets directly to consumers and through travel agencies, combining network connectivity with relatively low fares. Scheduled flying eventually became central to the company's identity as it moved beyond its original charter-focused model.
Low-fare scheduled air service · 2002
City Shuttle
City Shuttle was Air Berlin's low-fare scheduled product for travel between German airports and European cities. It helped the company compete for business and city-break traffic while retaining service elements such as complimentary meals and seat reservations. The product reflected Air Berlin's hybrid positioning between traditional full-service airlines and no-frills low-cost carriers.
Leisure aviation · 1978
Leisure and charter flights
Charter and holiday flying was Air Berlin's original business and remained important throughout its history. Services focused heavily on Mediterranean resorts and other destinations popular with German vacation travelers. The leisure operation served tour operators as well as direct customers and was later supplemented by the acquired LTU, Belair, and Niki businesses.
Passenger air transport · 2007
Long-haul services
Long-haul flying expanded substantially after the LTU acquisition in 2007. Airbus A330 aircraft and the associated route portfolio allowed Air Berlin to serve destinations beyond its European and Mediterranean core. Long-haul operations were later reduced as the airline sought to improve profitability amid high costs and continuing losses.
Controversies
2008
Dispute over Catalan-language policy
Joachim Hunold criticized language policy in Catalonia and the Balearic Islands in Air Berlin's inflight magazine. The comments drew criticism from Catalan-language advocates and a public clarification from the Balearic president, who said the regional government had encouraged airlines to include Catalan in onboard announcements.
Marketing campaigns
- 2002City Shuttle
Germany · United Kingdom · Spain · Italy · Austria
Air Berlin marketed a low-fare scheduled network from several German airports to European city destinations, broadening the brand beyond traditional holiday charter travel.
Outcome. The initiative helped establish Air Berlin's hybrid semi-low-cost positioning.
Brand decisions
2017
File for insolvency and sell operating assetsOtherBackground
Years of losses and the withdrawal of further financial support by Etihad left Air Berlin unable to continue under its existing financing model.
Action taken
Air Berlin entered insolvency protection, used transitional government-backed financing, and marketed aircraft, routes, employees, and other operating assets to buyers.
Aftermath
Lufthansa-related companies and easyJet took over parts of the operation. Air Berlin ended commercial flights in October 2017 and entered liquidation.
- Lufthansa Group — Lufthansa-related companies acquired or assumed parts of Air Berlin's aircraft, routes, employees, and operating businesses.
- easyJet — easyJet took over substantial portions of Air Berlin's Berlin-based operation and associated assets.
2012
Join OneworldStrategyBackground
Air Berlin sought broader international connectivity and a stronger position as a network carrier.
Action taken
The airline joined Oneworld after establishing codeshare relationships with alliance members.
Aftermath
Membership expanded partnership opportunities, but it did not resolve the airline's financial difficulties.
2011
Deepen Etihad partnershipStrategyBackground
Air Berlin required additional financial and network support while seeking an international growth platform.
Action taken
Etihad Airways acquired a significant stake and developed extensive commercial cooperation with Air Berlin.
Aftermath
The partnership provided support for several years but did not eliminate Air Berlin's structural losses and debt burden.
2007
Acquire LTUM&ABackground
Air Berlin wanted to broaden its leisure business and gain a stronger long-haul platform.
Action taken
Air Berlin took over LTU and integrated its aircraft, routes, and technical operations.
Aftermath
The LTU brand was retired in 2009, while Airbus A321 and A330 aircraft became part of the wider Air Berlin operation.
2006
Acquire dbaM&ABackground
Air Berlin sought to strengthen its domestic German position and expand its passenger network.
Action taken
The company acquired German domestic airline dba and operated it as a wholly owned subsidiary.
Aftermath
The dba brand was discontinued in 2008, while employees were offered positions with Air Berlin.
Sources1 sources
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