MIAMI- Air Belgium (KF) has postponed today its flight resumption to the French Antilles for July 15 due to recent government mandates extending travel restrictions.
However, the airline’s updated finances are stronger as KF increased its capital to €28.2m, as four of the company’s shareholders subscribed to a capital injection of €6.3M, according to a report by Belgium media L’Echo.
Brussels South Charleroi, Belgium, and French Antilleshad had imposed travel restrictions, KF postponed operations during three weeks to those territories until June 3.
In the case of the French territories, the Belgium-based airline expected to resume the schedule on June 24 at the end of the quarantine period.
However, French authorities decided to extend the forced quarantine once again for all European passengers entering Guadeloupe or Martinique until July 10.
As a result, the company was forced to add a new three-week suspension to its French West Indies service until July 15 because of the “highly complicate and drastic condition” during traveler arrivals.
These complicated conditions include passengers being subject to obligatory COVID-19 RT-PCR tests and seven days of quarantine.
Response to customers
Belgium Air also said in the statement that it is in “no way responsible” for the lack of clarity and consistency on the part of officials, arguing that the new decree has not been disclosed yet.
Being “obviously extremely disappointed” due to this situation and offering sincere apologies, the airline will contact affected passengers with scheduled flights between June 24 and July 11 on an individual basis.
Shareholders’ capital injection
Following the issuing of 126,000 of new shares from the carrier, Wallonia Regional Investment Company (SRIW), Walloon Management and Investment Company (Sogepa), Belgian Federal Holding, and Investment Company (SFPI) agreed to inject €2m in the airline.
With these funds and a lower one from Sabena Aerospace of about €300,000 for a total of €6.3M, the airline’s capital increased to €28.2m, as reported by both L’Echo and ch-aviation.com.
Additionally, the three main investors subscribed to 30,000 convertible bonds for a total of €1.5m, an amount that will be equally divided among the three. The move adds €7.8m in capital support for the carrier.
L’Echo also reported that Aviation Investment Holding (AIH), which holds a 49.95% stake in KF, did not participate in the capital injection.