Almost no chance for 10,000 Air Belgium passengers to get a refund

The collapse of Air Belgium, and the restart into cargo-only operator Air One Belgium leaves a bitter taste in the mouths of many Belgians. The airline, which had already struggled financially, ceased its passenger operations while leaving thousands of customers in uncertainty. Travel agencies, which had negotiated agreements ensuring full refunds for affected passengers, now find themselves outraged as these commitments appear unlikely to be fulfilled.

Jean-François Defour, Vice President of the Union of Professional Travel Agencies (UPAV), expressed his frustration, stating, “We feel betrayed.” Many travel agencies had previously suffered financial losses due to Air Belgium’s past operational struggles, and now face another setback due to the abrupt cessation of flights. Defour emphasized that passengers who purchased direct tickets from the airline or through travel agencies now have “almost no chance of getting a refund.” Under Belgian insolvency law, passengers will rank behind priority creditors such as banks and the Belgian state, making reimbursement unlikely.

Two Scenarios for Passengers

There are two possible scenarios for affected travelers. Those who booked flights directly with Air Belgium—either through the airline’s website or a third-party agency—face significant difficulties in obtaining a refund. The situation is especially dire for those who had booked trips to Mauritius or South Africa for the holiday season, as they may also lose non-refundable hotel reservations.

On the other hand, passengers who booked organized travel packages have a better chance of recouping their losses. Travel agencies are legally required to offer alternatives, often at their own expense, which has proven costly. “We had to rebook last-minute tickets with other airlines at a high price,” Defour explained.

Founded in 2016 by CEO Niky Terzakis, Air Belgium initially aimed to establish a Belgian long-haul carrier operating from Charleroi Airport. However, financial instability plagued the company. In September 2023, it announced the termination of its passenger flights due to unprofitability. Attempts were made to restructure the company under judicial reorganization procedures (PRJ), but the eventual sale of its cargo division to new investors in December effectively marked the end of its passenger operations.

The airline had specialized in ACMI (Aircraft, Crew, Maintenance, and Insurance) operations, leasing its aircraft to other carriers after failing to sustain its own scheduled routes. A former flight attendant, Marcia (a pseudonym), described to La Libre Belgique the experience as an “incredible project with an excellent team,” but acknowledged severe operational challenges, including aircraft availability issues that led to the loss of potential contracts.

For the approximately 150 employees now facing unemployment, the sudden closure came as a shock. Staff received an email informing them they would receive their termination notices by late March or early April. “The management’s communication was nonexistent,” Marcia lamented, adding that many employees sensed trouble but were left in the dark. She also noted that the company’s leadership became increasingly aggressive in its final years, making abrupt decisions that negatively impacted operations.

Despite the difficulties, some former employees maintain a degree of respect for CEO Niky Terzakis, acknowledging the immense challenges he faced in keeping the airline afloat. However, the sentiment of disappointment and frustration remains widespread among those affected.

As the dust settles, many questions linger about the role of the Walloon government—one of Air Belgium’s key shareholders—and whether it could have done more to prevent this outcome. In the meantime, passengers and travel agencies face the harsh reality that refunds may never materialize, marking a disappointing chapter in Belgium’s aviation history.

The fate of these passengers has been discussed numerous times in the Aviation24.be forums, highlighting the widespread frustration and uncertainty among those affected.

Source: La Libre Belgique, Raphaël Meulders, February 6, 2025