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Air Berlin, Germany's Second-Largest Airline, Goes Bankrupt

Aug. 15, 2017
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2 min read
airberlin-plane-at-ord-gate-featured-photo-by-jt-genter
Air Berlin, Germany's Second-Largest Airline, Goes Bankrupt
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Over the last few months, a couple of notable airlines have made news by declaring bankruptcy (Alitalia) or getting dangerously close to bankruptcy (South African Airways). Tuesday, we learned that yet another airline is on the brink: Air Berlin. The German carrier's bankruptcy comes after the cash-strapped Air Berlin was denied additional funding by part-owner Etihad Airways, which provided 250 million euros (US$294 million) to keep the airline afloat just a few months ago.

In order to keep operations going in the short run, the German government quickly announced that it would be providing a loan of 150 million euros (US$176 million). This funding is expected to keep the airline operating for three months. So, you're going to want to book a trip soon, especially if you want to take advantage of the Amex Offer of 20,000 Membership Rewards for spending $1,000 with Air Berlin.

We've known for a while that Air Berlin wasn't doing well. It has struggled to differentiate itself in a crowded aviation industry. Would it try to cut costs and structure as a low-cost carrier to avoid competing head-to-head with Germany's flag carrier Lufthansa? Or, would it act as a full-service carrier as a fellow member of the Oneworld alliance? Its identity struggle has persisted for years.

This marks another black-eye for Etihad Airways. The Abu Dhabi-based carrier has invested heavily in two money-losing European airlines, with a 49% stake in Alitalia and 29% in Air Berlin. These two cash-draining mistakes are a large part of the reason that Etihad's former CEO James Hogan no longer holds his position at the helm of the Middle Eastern airline.

There's no word yet on what the airline's bankruptcy will mean for the Air Berlin TopBonus mileage program. Currently, the program is in the midst of a devaluation — with sweet spots open for flights booked until the end of August. For now, though, hold off on booking Air Berlin flights for departures beyond November.

Featured image by JT Genter

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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

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TPG Editor‘s Rating
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.