Air Belgium, under judicial liquidation, must find a buyer within four months

Air Belgium, which had been under judicial reorganisation since September 2023, was placed under judicial liquidation with asset transfer by the Walloon Brabant Business Court on 19 September 2024. This decision marks the end of the judicial reorganisation process, with a court-appointed administrator tasked with transferring the company’s assets to potential investors. Air Belgium has been given a four-month period to find a buyer, though the company’s management hopes to secure a deal within a month and a half.

The company ceased its passenger flights in October 2023, leaving over 11,000 passengers awaiting refunds. Since then, Air Belgium has focused on cargo transport and operating flights for other airlines. Despite the efforts to restructure its business, the company failed to regain profitability, partially due to the impact of the COVID-19 pandemic, rising fuel prices, and the war in Ukraine.

Air Belgium’s assets, including three Airbus A330 planes and one Boeing 747-8, as well as its remaining operations, are now up for sale. The approximately 500 employees are also affected by this liquidation process. While some creditors, primarily banks, are expected to be reimbursed after the sale, passengers awaiting refunds for their cancelled flights are unlikely to recover their money.

Founded in 2016, Air Belgium initially offered passenger flights to Hong Kong and later to the French Caribbean islands, South Africa, and Mauritius. However, due to financial struggles and changing market conditions, the airline shifted to cargo and charter services before abandoning its passenger operations altogether.

Government entities hold significant stakes in the company, with Wallonie Entreprendre owning 35% and the Federal Investment and Participation Company (SFPI) owning 12.5%. The largest shareholder is Hongyuan, a Chinese logistics group with 49.95%. Despite initial high expectations for the airline, it faced several challenges that ultimately led to its current financial difficulties.