James Hogan, chief executive officer of Etihad Airlines  (left) and Wolfgang Prock-Schauer, chief executive officer of Air Berlin at a joint news conference in Berlin.

Reuters/Bloomberg/Frankfurt/Athens

Air Berlin has denied being controlled by Abu Dhabi-based Etihad Airways after the European Commission said it was examining Etihad’s investment in the German airline, to see if it complies with rules for operating an airline within Europe.

A spokesman for Siim Kallas, the European Union commissioner for transport policy, said yesterday the Commission was looking at a number of non-EU investments in European airlines, including Etihad’s stake in Air Berlin.

Air Berlin said Etihad did not control it and that the two only worked closely together as strategic partners.

“Strategic decisions are made by Air Berlin alone. As a shareholder, Etihad has neither a blocking minority nor special rights,” a spokesman said in a statement.

In order to obtain an operating licence in the EU as a European airline, a carrier must be more than 50% owned and “effectively controlled” by an EU member state or EU citizens.

“Accordingly, the Commission has asked the member state concerned to provide further information on how these investments comply with the rules on ownership and control of European airlines,” the spokesman said in an e-mailed statement.

Etihad owns 29.2% of Air Berlin, which is Germany’s second-largest airline but is struggling with debts and has twice postponed the publication of its 2013 results.

 Etihad, which is building up a network of minority stakes in airlines around the world as it seeks to drive traffic to its Abu Dhabi hub, has provided loans to Air Berlin and bought a majority stake in its frequent flyer programme.

Etihad is also looking at the possibility of buying a stake in Italy’s ailing Alitalia.

The investigation also involves UK carrier Virgin Atlantic, in which US-based Delta Air Lines owns a 49% stake. Virgin said in a statement it had “not received anything from the European Commission on this matter and our operations continue to fully comply with our regulatory obligations.”

The investigation also involves Luxembourg cargo airline Cargolux Airlines International and Czech flag-carrier CSA Czech Airlines, commission officials said. Cargolux and CSA didn’t immediately respond to questions about the inquiry.

China’s Henan Civil Aviation Development & Investment bought a 35% stake in Cargolux in January. Korean Air Lines Co bought a 44% stake in Czech Airlines last year.

The commission is also watching Etihad’s continuing talks with Italian investors about an investment in struggling Alitalia.

The commission cannot force investors to divest stakes in European airlines, but it has asked the member states concerned “to provide further information on how these investments comply with the rules on ownership and control of European airlines,” the commission spokesman said.

“Before we launch anything, we need to see whether there are grounds,” said the commission official. The official said foreign investments are welcome in EU airlines, particularly if they expand connections between regions. “But if it’s a Trojan horse and reduces competition, that’s another thing.”