Air Berlin, Germany’s second largest airline, filed for bankruptcy protection on Tuesday following years of losses and after key shareholder Etihad Airways withdrew funding, with bigger rival Lufthansa saying it is in talks to take over parts of the business. The loss-making airline, which carries some 80,000 people a day mostly on short-haul destinations, will get a 150 million euro ($177 million) government loan to keep flights running and not leave travellers stranded during the peak summer season. “The return flights of these travellers back to Germany with Air Berlin would not have been otherwise possible.”

The loan will allow Air Berlin to operate until the end of November, its CEO Thomas Winkelmann said. Lufthansa has already leased crewed planes from Air Berlin to provide flights by its Eurowings budget airline and has made no secret of its interest in taking on more of Air Berlin’s business, although it has said debts and anti-trust issues were potential obstacles.
Air Berlin, Germany's second largest airline, files for bankruptcy protection after its main shareholder, Abu Dhabi-based Etihad Airways, chose not to make more financing available.