Germany expects Air Berlin rescue loan to be repaid in full

The German govt has said it still expects the E150m loan granted to Air Berlin to be repaid in full, after a court opened formal insolvency proceedings against the carrier Wednesday. The loan granted in August had kept Air Berlin planes in the air while administrators held talks with prospective buyers of the airline's assets. Air Berlin ran into trouble after a rapid expansion of the business left it saddled with debts while increased competition from low-cost carriers meant it struggled to make a profit in recent years. The airline carried out its final flight last Friday. Following the formal opening of the insolvency proceedings Wednesday, Air Berlin quoted its administrator as saying its assets were not expected to be sufficient to satisfy the "existing priority claims" beyond the costs for the insolvency proceedings. <br/>