Air Berlin has filed for insolvency and is in discussions with Lufthansa and the German govt to rescue parts of its business, after Etihad said it would not provide any further funding for the struggling airline. The carrier has struggled to compete with low-cost rivals and has been kept in the air by repeated cash injections from Etihad, which bought a stake in the airline in 2011. However, Tuesday Air Berlin filed a provisional insolvency proceeding at the local court of Berlin-Charlottenburg after Etihad refused to provide further guarantees for Air Berlin’s short-and medium-term commitments. Two members of Air Berlin’s board who were nominated by Etihad also resigned from their positions. A spokesperson for Etihad said that the company “cannot offer funding that would further increase our financial exposure”. <br/>