MIAMI – Brussels Airlines (SN) has received a stabilization package from the Lufthansa Group and the Belgian Government. The bailout was approved by the European Union Commission on August 21.
Last month, Belgian authorities reached an agreement with SN and LH regarding the rescue of the Belgian flag carrier. The agreement was for the airline to obtain a €290m loan in exchange for sufficient guarantees.
Brussels Airlines is an airline part of Lufthansa Group and therefore Star Alliance. It has 48 aircraft, operating to more than 80 destinations. The airline is not only offering point-to-point service to/from the capital of the European Union, but it also has a huge presence in Africa.
The airline has just survived the attempt to merge into Eurowings.
Comments from Brussel Airlines CEO
Dieter Vranckx, CEO of Brussels Airlines, said “With this news, we finally conclude the three pillars of our survival and long-term competitiveness. We are relieved that the execution of the financial transaction can take place.”
The CEO states that the airline will now shift all its focus towards a timely implementation of its turnaround plan ‘Reboot Plus.’
“Thanks to the support and trust we receive from our shareholder Lufthansa, the Belgian government, and from all our employees, we can create a strong and competitive Brussels Airlines with long-term perspectives, an important engine for the Belgian economy. For that, I sincerely thank all involved parties,” concluded Vranckx.
The Right Decision at the Right Time
According to a report by Belgian La Libre back in June, the SN-Lufthansa Group partnership was in danger of ending. The situation then entailed either the Group putting up for sale 55% of its shareholdings or else SN going belly up. The clock was ticking for SN.
Yesterday’s approval of the stabilization package from Lufthansa Group and the Belgian Government seems to be the right and timely decision for the airline and the Belgian economy.
Featured image: Brussels Airlines Airbus A320-214 OO-TCQ. Photo: ©Nick Van Der Hook