Air Berlin, one of Germany’s biggest airline files for bankruptcy.

Air Berlin has gone bust, but passengers needn’t panic just yet.

Germany’s second biggest airline filed for bankruptcy on Tuesday after Abu Dhabi’s Etihad — its leading shareholder — refused to finance another bailout.

Air Berlin will continue flying for the time being thanks to a loan of €150 million ($176 million) from the German government. That should also allow all 7,200 employees to keep their jobs while executives try to restructure or sell the company. “Air Berlin’s business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions,” Etihad said in a statement.

“Under these circumstances, as a minority shareholder, Etihad cannot offer funding that would further increase our financial exposure.”

Air Berlin has struggled for years to turn a profit despite serving more than 2 million passengers a month.

Source: Cnn money

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