Air Berlin set for 'fundamental changes' after 2013 loss

Air Berlin, Germany's second-biggest airline, plans to soon implement "fundamental changes", its chief executive said on Monday, after the company posted another net loss for 2013 and announced a recapitalisation. The loss-making and debt-ridden airline has said it will boost its capital by 450 million euros ($624 million) by issuing two bonds. Its main shareholder, Abu Dhabi-based airline Etihad, will alone provide 300 million euros ($416 million) by subscribing to bonds convertible into Air Berlin shares. Air Berlin also plans to come up with a new strategy in the coming months. "I don't want to give the impression that we will go on like that," chief executive Wolfgang Prock-Schauer said in a telephone conference Monday. He pledged to come up "soon" with "a concept" that will allow the airline to "position itself sustainably into profitable territory". "We have to come up with fundamental changes," he said without further details. Air Berlin posted a net loss of 315.5 million euros ($438 million) last year, it said late Sunday, its fifth loss in the past six years. Investors had been speculating on Etihad increasing its 29-percent-stake in Air Berlin, and even a possible tie-up with Alitalia.