Abu Dhabi – Mubasher: Etihad Airways is being sued for up to $2.26 billion (EUR 2 billion) due to its role in the bankruptcy of German carrier Air Berlin, a court in the German capital said on Friday.

The Abu Dhabi-based airline was the main shareholder in Air Berlin that announced insolvency in August 2017.

Air Berlin ran out of money in spite of receiving a “comfort letter” from Abu Dhabi's carrier that Etihad Airways would provide financial backing to the troubled German airline over the next 18 months.

“Etihad’s announcement that it would no longer stand by that commitment was the trigger for Air Berlin’s collapse, which prompted severe political recriminations and significant upheaval in Germany’s aviation market,” the Financial Times reported. 

Air Berlin’s insolvency administrator Lucas Floether asked judges to award the former operator EUR 500 million, along with a ruling with further compensation.

It is worth noting that Etihad had owned 29.2% of Air Berlin since 2011.

“We believe that the claim is without merit and will defend ourselves vigorously against it,” the spokesperson said. “Furthermore, we will not comment publicly on this issue at this time,” an Etihad spokesperson commented in a statement.