Air Belgium to Phase Out Airbus A330neo Fleet Amid Operational and Financial Issues

Air Belgium has announced plans to retire its two Airbus A330neo aircraft, following ongoing engine problems and unproductive negotiations with Airbus. This decision emerges as the airline grapples with operational challenges and financial difficulties, including significant debts and delayed passenger refunds.

Air Belgium’s Operational and Financial Struggles
The Belgian carrier has been in the news recently due to a local court extending its Judicial Reorganisation Procedure (PRJ) by four months, affecting refunds for nearly 11,000 passengers. Operational issues with its Airbus A330neo fleet and staffing have compounded these challenges, as reported by L-Post.

Issues with the Airbus A330neo
Air Belgium’s A330neo fleet, consisting of OO-ABF and OO-ABG, has faced notable challenges. OO-ABF has been grounded at Brussels Airport since August 2023 following a hydraulic pump failure that led to metal debris in the engine. Despite efforts, the engine issues have persisted, rendering the aircraft a familiar sight at Brussels Airport. The A330neo fleet is equipped with Rolls-Royce Trent 7000 engines. OO-ABG, meanwhile, is leased to LOT Polish Airlines and has operated without significant issues.

A Rolls-Royce spokesperson said: “As far as we are aware this is not an engine issue. The Trent 7000 engines on these aircraft have performed well and have delivered industry-leading levels of reliability and availability during the time they have been operated by the airline. Air Belgium remains a valued customer.”

Financial Troubles and Restructuring Efforts
Air Belgium suspended all scheduled passenger flights in October 2023, accumulating substantial debts with a loss of €11 million (~$12 million) in 2021. The airline has struggled to turn a profit despite operating routes to Johannesburg, Cape Town, and Mauritius. The PRJ extension granted to the airline has had negative implications for passengers awaiting refunds for flights after October 3, 2023.

Uncertainty Over Sichuan Airlines’ Investment
Previously, there were reports that Sichuan Airlines’ parent company might invest in Air Belgium, particularly for its landing rights. However, recent developments suggest that this rescue may not materialize. Air Belgium, partly owned by the Chinese logistics organization Hongyang and the Belgian government, faces complexities in accepting such deals while maintaining its Belgian airline status.

Shifting Focus to Wet Lease and Cargo
Currently, Air Belgium operates a diverse fleet, including two Airbus A330-200s on wet lease to Sri Lankan Airlines and a mix of Airbus A330-200F and Boeing 747-8F aircraft for cargo operations. However, one of its 747-8F planes has been inactive since October 2023.

The airline is also experiencing a loss of employees to other airlines like Brussels Airlines and Condor, further complicating its operational capacity.

This series of events marks a critical juncture for Air Belgium as it navigates through a challenging phase, balancing operational needs with financial constraints and market dynamics.

Sources: AirGuide Business airguide.info, bing.com, simpleflying.com, Rolls-Royce PLC