Air Belgium on Brink of Bankruptcy Amid Investment Failures

Air Belgium, which suspended its passenger flights in 2023, is on the brink of bankruptcy, facing a critical two-week deadline to secure new investment. The airline, which has been under judicial reorganization to restructure its finances, was given an extension by the Nivelles business tribunal on September 3, 2024, after its previous attempts to find a solution fell short.

The carrier’s financial woes are significant, with reports from L’Echo indicating that Air Belgium needs approximately €18 million ($19.6 million) urgently to avoid collapse. The airline has been protected from creditors under judicial reorganization, a legal framework allowing companies in distress to reorganize their debts and operations.

Chinese cargo carrier Sichuan Airlines had been considered a potential investor but has since withdrawn its interest, further complicating Air Belgium’s financial recovery efforts. Despite the setback, the Belgian court granted an extension after a new potential investor emerged, providing a slim hope for the airline’s survival.

Air Belgium originally launched in 2016 with ambitions to connect Belgium with Asia. However, in 2022, the airline shifted its focus to Africa, serving destinations such as South Africa and Mauritius. Last year, the carrier announced it would halt passenger services to concentrate on cargo transport and Aircraft, Crew, Maintenance, and Insurance (ACMI) services.

As Air Belgium navigates this critical period, the outcome will depend on securing the necessary funding within the next two weeks. Without a successful investment or financial restructuring, the airline’s future remains uncertain.

Related news: https://airguide.info/?s=Air+Belgium

Sources: AirGuide Business airguide.info, bing.com, Air Belgium, L’Echo