from berlin. germany's second-biggest airline files for bankruptcy. air berlin tells us -- tells its investors therere is no waway forward. they say they can no longer prop up the struggling carrier. north korea tones down its threat to o attack the u.s. isld of guam. we speak to a nuclear security expert about what the chances are for return to diplomacy. hundreds dead and hundreds still missing, the search for survivors in sierra leone after

floods swept through the capital. ♪ sarah: i am sarah harman, good to have you. air berlin has filed for bankruptcy. that comes after its major shareholder with drew financial support. etienne said it has no confidence t t strugglining gern carrrrier can survive. reporter: air berlin had been a growing crisis, piling up the debtbt in excessssf one billllin euros. the airline posted repeated losses following a series of takeovers. it filed for bankruptcy after its carrier said it would no longer provide further financial support. >> that is not surprised me as

well. everyone knew that air berlin was not doing well. >> i am thinking about the poor people that work at air berlin. what will happen to them? >> it is sad news. i hope they find a solution, because i love air berlin. reporter: t the government will provide a bridging loan to keep flights going for the next three months. >> this decision will ensure that business can continue so that flight operations do not have to be terminated. air berlin has announced ticket reservations will remain valid and air berlin and schedules will not be affected. in addition, custotomers can stl book f future flights.s. reporter: but the government will not be bailing ouout the airlinine. air berlin has said it would be overseeing the insolvency on its own without any administrator.

meanwhile, rival carrier lufthansa has expressed interest in taking over parts of air berlin, including staff. it will be encouraging news to the air berlin workforce, which numbers about 8500. sarah: let's get more from hobby air -- javier at our business desk. what went wrong for air berlin? >> the european airline market has changed a lot and they are defining themselves. we have low-cost carriers that are cheap and try to lower costs. and then you have traditional carriers like lufthansa or british airways or air france. in the middle we had air berlin, but never decided what they wanted to be. i did not want to be a low-cost carrier. but they cannot afford to have a premium service for premium passengers. the decisions they made cut costs and were cheap and/or not

good for the premium customer, or offered services that were good for the premium customer, but not cheap for the budget customers. in the end, they left with no one. in order to understand what happened, it is important to see the history of air berlin because they bought different airlines but never integrated them successfully. i brought a piece so you can see exactly what i mean. >> the berlin-based airline took off in 1978 as a charter company. the first one flew to mallorca. then it became an official airline carrier. five years later, it was germany's second-biggest airline, after lufthansa. in 2006, they launched their ipo in frankfurt. then, they made various purchases. but apparently they got too carried away. since 2008, aiair berlin has consistently been in the red.

the crash began when the old boss left the company. in 2011, the new ceo forormed an alliance with abu dhabi's e etid , which owned a stake in the british in that -- in the german airline. no one was able to gain control of the company's nosedive, despite austerity and improvement measures. in 2015, air berlin suffered losses o of 450 billllion euros. etihad floododed t the company h infusisions of capipital, but tt did not hehelp. there were canceled flights and they continue to lose customers. now, etihad has pulled the plug and air berlin makes its final descent into insolvency. javier: a lot of alliances, mergers, and it is not getting better. sarah: it is a twisted path. before air berlin disappears,

the government is getting a loan. why alone and not a bailout? javier: the interest of the government -- gererman governmet is not the company, but to ensure german travelers can complete their holidays this year. it is as simple as that. just enough to continue operations during the holiday season so no one has to interrupt or cancel their vacation. sarah: meanwhile, air berlin's planes are still flying? javier: they are still flying. but services are bad, luggage gets lost, it is mismanaged, even though it has little money right now. it is not the best experience. sarah: everyone i have spoken to has some air berlin horror story. but air berlin is germany's second-biggest airline. what does it mean for the industry in general? javier: it is a hit for german passengers because they will have less choices. in the airline industry it is important to remember air berlin

is part of a world alliance. they have a lot of partners and cochair partners, such as british airways. so that alliance, will have to rethink its strategy and look to the future without one of its most important partners. sarah: a big day for the airlines. thank you for your insights. iranian president is on ronnie --rouhani one step impose sanctions. they wanted to revive the program within hours. this, despite a 2015 deal with world powers that limited c sarad

wawait and see what actions the u.s. takes in the region first. u.s. defends sigrid -- secretary jim mattis said the u.s. would intercept any missiles going to guam, and any attack on the island would be considered a declaration of war. joining us now for more analysis from vienna, the former head of verification and security policy coordination at the international atomic energy agency. thank you for being with us. the threat of a missile launch near guam has been one of kim jong-un's most serious provocations. do think he is backing down now, and if so, why?

[indiscernible] >> i i do not think k it is a mr of backiking down. i i think north koreaea was issg threats to attttract attention than response from thehe u.s. side. some h have misistakenly perceid thisis to be a backing d down. ifif you look at thehe statement from the dprk, they're waiting to see how the u.s. will respond. sarah: if it is not a backing down, what is it? what is in it for them? >> i do not ththink attackikingm or any part of the u.s.s. was er in the cds o of the north koreans. this was merely a matter of raisin the antnte to get americans to negotiate directly with them. it has always b been their objective to sit down thth amerans toto negotiate directly, as they have done in the past. sarah: china is now banning

north korean imports. do you think those measures will be enough to compel pyongyang to curb its weapons development? tariq: thus far, u.n. and other international sanctions have not affect did behavior change in north korea. if we look at the record of sanctions, in changing the nature of countries regarding nuclear programs, there has never been a single success. israel, pakistan, north korea, it is not changed their policies because of sanctions. sarah: let's go back to the issue of iran. we heard the iranian president threatening to start his countries -- his country's nuclear program. are they really considering going back to square one and hitting the restart button?

[indiscernible] taririq: in my view, i thinknk iranians would be badly advised to unilaterally break out of the comprehensive plan of action. thus far it has been working properly. iran would be well advised to continue to fully implement the nuclear deal. without that, it will lose the support of the european union, the french, germans, europeans and others who seem to be pushing back against the trump administration's attempts to break out of the nuclear deal. thank you for your analysis, former head of verification and security policy coordidination t the iaea in vienna. nowhere are these sorts of tensions more stark than on the border region were north and south korea meet.

our reporter has been there. he sent us this report. reporter: t this fence forms pat of the most militarized border in the world. behind a at liza river, andnd oe otheher shore, is north korea. it does not get much more frontline than this. for the villagers of hwasong, the frontline is home. he has been living here 43 years. she knows across the border live koreans just like her. and yet, thehey are worldsds ap. >> some people h here used to en hahaveamily in t the north, long ago. ofof course, they y miss them. they would like to see thehem, d they have been hoping for that to happepen for so long. i wish we could all memeet each other as free people.

reporter: she is not alone. a train once connected north and south. today, peoplee express their hoe on colorored ribbons, hope foror country ththat is not separatedy barb dwyer -- by barbed wire. >> we are alall the same people. i am heartbroken when i think about the people in north korea. i wish for a unified korea. so we can live together peacefully. it is hard for me to talk about this. when i think about the situation, i always feel like crying. reporter: the railway across that bridge leads right into north korea. no train has crossed the border in almost 10 years, but the

newly elected president wants to start talks with the north that might one day lead to resuming cross-border train services. even though in the current situation, nothing seems m more unlikely. in her home c close t to thehe , shshe often thinks about her grandchildren. she wishes t they coululd grow n a united korea. but she has no illusions about the currrrent reality. >> i thihink it will not happent this point. my mother-in-law lived here all her life and it did not happen. unification is not something that is easy to achieve. reporter: and so the fence remains between the residence of hwasong and their neighbors. it neighbors they will likely never meet. sarah: you are watching dw news. coming up, the latest on finding survivors in sierra leone after devastating flooding and

mudslides hit the capital of freetown. ♪ sarah: that story, plus the business news, coming up next on dw. ♪

sarah: welcome back, you are watching dw news. germany's second-biggest airline, air berlin, has filed for bankruptcy. they t told investotors there wo ability to move forward once etihad withdrew support. lufthansa considers a partial takeover. the president of sierra leone says the country needs urgent support after severe mudslides

and flooding in the town of freetown. many people were killed when a hillside collapsed. military has been deployed. severe storms are common during the rainy season in freetown, but they normally do not have such a devastating impact. hundreds more are still missing and the death toll is expected to rise. >> as the death toll rises, the grim task of recovering bodies has begun. many victims were buried alive as their homes collapsed. many were carried away by the river, even out t to sea. >> we are coming out t to see h to exhume those ones that have are even buried. and take t them to the mortuary and perhaps give them a burial. reporter: mortuary's ststrugglig

to cope wiwith the flooding, aid workers are woworried about the risk of d disease. > conontamination is an issue worry abobout, cholera. we look at the children, who can be particularly vulnerable. reporter: intense heat is making rescue if -- rescue efforts more difficult. thousands have been left homeless and the final number of victims will not be known for some time yet. sarah: india is marking 70 years of independence from british colonial rule. the anniversary is a celebration, but brings painful memories of partition, when they were separated into muslim majority pakistan, and hindu majority india. they o outline theirir vision fr the country.. reporter: a traditional guard of honor. the prime minister made a bold vision.

amid the pageantry of the 17 century fort in the capital, narendra modi vowed to protect the country from separations. >> at sea or on land, in cyberspace or outer space, india is capable of providing any type of security for itself, and of diminishshing the confidence of anyoyone wishingng to harm the country. reporter: 70 years ago, history was made. india's first prime minister marked i iia gaining independndence from british colonial rule. india will awake to life and freedom, he said. follllowing in his footsteps, mi saw to raise the same confidence. >> together, we will create an india free of terrorism, clan

rivalry, and caste injustice. we will create an india where there is no compromise on cocorruption and nepotism. independence coincided with partition of the subcontinent, creating pakistan and india, and decades of conflict. at the border today there was a pause in that acrimony. indian soldiers offering suites to their counterparts, a gesture that symbolizes efforts to soothe efforts between these neighbors. sarah: javi is back with more business and good news for the u.s. economy. er >> the closely watched u.s. retail sales are out and they saw the biggest jump in more than half the year last month as consumers bought more cars and spending on nonessential items like vacations. retail sales were up 0.6%. that points to an economy humming along as they try to

dodge whether the u.s. federal reserve will raise interest rates again in december. consuming -- consumer spending accounts for 2/3 of spending. let's take a closer look at the figures with our financial correspondent. yet another figure showing us a strong economy in the united states. investors are looking at that. can we expect an ongoing rally? >> investors at this point seem to be slightly more optimistic after a lot of terrible and concerning news, and the turmoil that followed here on wall street. these sales figures of certataiy helped because they paint a broader picture of an economy gaining momentum. american consumers are the driving force of the american economy. these numbers show they are showing signs of life. but it could also mean rising interest rates.

now, investors a are waiting for this to change. there could be rate hikes. javier: speaking of terrible news, we saw two more ceo's resign. is this to be seen as an isolated incident, or is support for donald trump dwindling? sophie: ceo's now more than ever are facing a tough decision whether or not they have to save -- face their clients and shareholders of the president. trump reacted with an insulting tweet, calling the ceo who had left a bad spender. for the rest of the ceo's on the council, it is now or never. if none of the events of the last month made them reconsider their role, they will have to endure whatever comes next. the ceo of ford has expressed

concern regarding trump's immigration policy. but many other companies did not comment at all. javier: thank you very much for the analysis. we are now taking a look at the german economy on this side of the pond. germany grew 0.6% between april and june, a little less than expected. according to the federal statistics office, it dropped the expansion we have seen recently. economic growth is a driven by strong household spending and more government spending. despite the disappointing numbers, germany will probably still post its eighth consecutive year of growth since -- strong business confidence has selected the strength of the german economy. not long ago, every space mission we heard of seemed to be from nasa. now the private sector is offering alternatives.

spacex successfully launched another resupply mission monday. the falcon 9 rocket launched from cape canaveraral on i its y to the international spa ststation. it c contained nearly ththree ts of research, including a supercomputer, 20 mice, and ice cream for the iss crew. that is all from the business desk. sarah: ever since last july's failed coup in turkey, some 22 german nationals have been arrested there. nine of them are still in prison. one is a journalist. her work was published by organizations seen as having socialist and pro-kurdish leanings. she was detained earlier this year and now faces allegations of spreading propaganda for a terrorist organization, as well as membership in a terrorist group. reporter: the women's prison in

istanbul, camera teams are not wanted. she has been locked up, waiting trial since may. she is a german citizen. her father has been here every monday since her arrest. he is only allowed to visit her once a week. >> they have destroyed our lives and created massive problems for us. mesale is the daughter of a guest worker. she was born in germany, study there, and opted for a german passport rather than assuming german-turkish citizenship. she has worked as a radio journalist and translator for a leftist news agency. her husband was a member of the pro-kurdish opposition party. he was arrested in early april. a further shock on the night of april 20, armed police stormed to their house in istanbul.

they ransacked the apartment and arrested mesale and her two and a half year old son was given to neighbors. her father took things into his own hands. he managed to get his grandson to join his mother mesale in jail. he informed the german consulate of -- of her arrest. something they should have done, because it involves a german citizen. he thinks his daughter is being used as a bargaining chip in the estranged german-turkish relations. >> i am not expecting anything from the turkish court because the trial will not be fair. reporter: despite being in prison for more than three months, he says mesale has not lost her optimism. >> she said, when i am out again, i will continue to write as a journalist and continue translating. reporter: she said, i am not

guilty, i will keep writing, even if the government does not like it, we will keep doing it. her lawyer is planning a defense, a lawyer and friend. the trial is due to take place in october. prosecutors are demanding a sentence of 15 years for supporting terror and being a member of the terrorist organization mlkp, as well as attetending a memorial for leftt fighters in 2015. they say it is a farce and a political prosecution. sarah: that is dw news. you are up-to-date, thank you for watching. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] .

you watching live in paris of fronts twenty fourth mean or sending a the top stories this hour. size the tensions between north korea and the united states off finally cooling as kim jong woon says he's putting holds. his plans to attack ghulam. thousands of civilians flee tell afro in iraq is government and coalition forces begin to bomb the sissy ahead of a ground offensive it's the lost iraqi stronghold. of the islamic state great. from the president of c. area. devastate. freetown the bodies of the four hundred people. told his ex. much higher