Brussels Airlines strongly refutes any rumour that it is bankrupt. The airline responds to reports from the Belgian news channel LN24, which said that the company is “virtually bankrupt”, based on the opinion of an expert. But Brussels Airlines admits that the current crisis is unprecedented.
Brussels Airlines does, however, confirm that talks are underway with the federal government of Belgium about aid because, like many other airlines, it has been severely affected by the coronavirus crisis. However, the airline refuses to deny that nationalisation of the company is on the table, which was the headline of the LN24 report.
The airline has taken drastic measures to protect its cash position since the very beginning of the coronavirus crisis, among others suspension of scheduled flights until April 19 and temporary technical unemployment for almost all personnel. The “Reboot” plan to improve profitability by 2022 is maintained.
CEO Dieter Vranckx stated a couple of weeks ago that the airline would survive, despite an impact of tens of millions of euros on revenues due to the coronavirus crisis.
The company is asking the government for at least € 200 million in support, plus probably € 90 million for recapitalisation. Other Belgian aviation players, such as TUI fly Belgium, Air Belgium, Sabena Aerospace, Aviapartner and Swissport, would also request government aid.