Thursday, Aug 23, 2012
Air Berlin PLC (AB1.XE) shareholder Etihad Airways is pressuring the airline to encourage Chief Executive Hartmut Mehdorn to step down, Germany's weekly manager magazin reports Thursday without citing sources.
Etihad Airways, which holds a 30% stake in Air Berlin, is losing patience with management after the carrier's loss widened in the first half of the year, according to the article. Air Berlin has also nearly exhausted an Etihad loan, the article adds.
Etihad CEO James Hogan is insisting on rapid action by Air Berlin's supervisory board chairman, Joachim Koerber, to replace Mehdorn, preferably with someone with considerable industry experience.
Etihad responded by playing down the report, but didn't deny the story to Dow Jones Newswires.
"While we do not usually comment on rumours or speculation, we consider these to be extremely scurrilous and irresponsible," an Etihad Airways spokesman said.
"Etihad Airways and Air Berlin have a very strong relationship which is starting to show positive progress, and both airlines are wholly committed to its long-term success," he added.
Mehdorn has been with the airline about one year, and his contract doesn't expire until the end of 2013.
Air Berlin wasn't immediately available for comment to Dow Jones.
Magazine website: http://manager-magazin.de
-Write to the Frankfurt Bureau at djnews.frankfurt@dowjones.com
(END) Dow Jones Newswires
23-08-12 1049GMT
