Air Belgium extends judicial reorganisation period: mixed reactions and ongoing industry engagement

Air Belgium has provided an update on the progress of its Judicial Reorganisation Procedure (PRJ) in a letter to its partners in the travel industry dated January 18, 2024. Following the initial four-month PRJ period set to conclude on January 22, 2024, the relevant court (Tribunal de l’Entreprise du Brabant Wallon) has granted a requested extension until May 13, 2024.

The extension is seen as necessary to finalise remaining agreements with creditors and execute existing ones, delaying the start of repayments until June 2024.

In response to the development, the travel industry and consumers are left with both positive and cautious sentiments. The decision to extend the PRJ period is viewed as averting the immediate risk of bankruptcy, providing an opportunity for Air Belgium to continue implementing its recovery plan. However, it falls short of full approval for the airline’s revival plan, leaving uncertainties about the eventual repayment process.

The UPAV, a representative body in the travel industry, acknowledges the complexity of the situation and emphasises its commitment to supporting its members. Despite challenges, they highlight the importance of conveying information transparently to clients, assuring them that Air Belgium is not in bankruptcy and pledging to provide updates in May 2024.

The UPAV continues to actively engage with relevant stakeholders, including Wallonie Entreprendre, and has been pressing for favourable conditions. Political efforts are underway to address the economic and financial implications for travel agencies, emphasising the severity of the situation at industry forums and through interactions with policymakers.

Given Air Belgium’s PRJ status, a degree of discretion is maintained, but the UPAV encourages inquiries from concerned parties. The ongoing commitment to advocating for the interests of travel agencies at all levels remains a top priority for the UPAV, as they navigate the intricacies of this challenging situation.