Germany must submit insolvency proceedings for Air Berlin subsidiary Niki after a decision of Berlin District Court to Austria. Niki has its seat in Vienna, as well as supervisory authority responsible for airline, declared court. There was thus a complaint by Austrian passenger service provider FairPlane against a decision of District Court Charlottenburg for Berlin as Insolvenzort instead.
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Should Niki not now appeal against decision at Federal Court of Justice in Karlsruhe, procedure would have to start in Austria in a few weeks ‘ time – negotiated sale of Niki to British-Spanish aviation company IAG is thus Risk.
The passenger service provider FairPlane promises a better chance of a bankruptcy in Austria to enforce customer claims of more than 1.2 million euros. The District court had opted for Berlin, however, because operational business and leadership of Niki had practically settled at headquarters of group’s mor, Air Berlin.
The main procedure must now be decided by regional Court of Korneuburg, FairPlane. The flight rights service provider had already requested opening of bankruptcy over Niki. Until a final decision, bankruptcy proceedings in Berlin could continue to be pursued, said a court spokeswoman. But previous provisional insolvency administrator, Lucas Flör, stated that procedure would not be opened in view of decision. Thus, sale of Niki to IAG could only be achieved if Austrian bankruptcy administrator takes over contract negotiated by Flör.
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The British aerospace company IAG has already stated that despite legal tug to Niki insolvency, he is holding on to purchase of Air Berlin subsidiary. The company’s subsidiary Vueling is still interested in airline and is working with all parties involved to drive purchase forward, IAG shared.
For Austrian holiday flyer Niki bankruptcy was applied for in December in Berlin. If Niki does not lodge a complaint within one month, insolvency proceedings in Germany may lapse.
