Brussels Airlines in 2020

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Flanker2
Posts: 1724
Joined: 05 Dec 2012, 23:15

Re: Brussels Airlines in 2020

Post by Flanker2 »

If SN is in negative equity, a loan won't change that.
The good thing is that LH is injecting equity to the tunes of 170 Millions, to bring the company back into solvency.

As for the loan, the government has SN's shares as collateral, meaning that they either repay it or the government becomes owner of SN.

The question now is not whether LH will pay the loan back in 6 years, but how long SN will last with this lifeline.
460 Millions is a lot of money, but it won't last forever.

Another question is how long LH will last with their 9 billions. I don't think that they'll last much longer than the Spring of 2021.
If the Parent Company goes under, all subsidiaries go under. We've seen that recently with Thomas Cook.

LH really showed some commitment here, with the equity infusion and by putting the company's ownership as collateral for the loan.
I also doubt that LH will be able to turn SN around before significant profits are made, but they will have to try harder this time, what choice do they have?

As a fervent critic and taxpayer, I can find peace with this deal.


I hope that they stop talking about A321XLR's for North America.
Those aircraft cost as much in capital costs as used A330's for only half the capacity.

Passenger
Posts: 6817
Joined: 06 Dec 2010, 20:54

Re: Brussels Airlines in 2020

Post by Passenger »

Flanker2 wrote:
27 Jul 2020, 01:45
Another question is how long LH will last with their 9 billions. I don't think that they'll last much longer than the Spring of 2021.
Another one of those Nostradamus predictions that will go lost in the www basements. Though predicting the Lufthansa bankruptcy surpasses your prediction, in 2014, that Brussels Airlines would cause an Ebola pandemy because they kept flying to Africa (on request of the medics) when the continent was hit.

Flanker2 wrote:
27 Jul 2020, 01:45
If the Parent Company goes under, all subsidiaries go under. We've seen that recently with Thomas Cook.
Wrong. Subsidiaries can survive when their parent company goes under. It depends on the commitments (example: bonds, bank guarantees) and the rights that the parent company has (example: Apple Store).

Thomas Cook Belgium went bankrupt because the Belgian nv/sa had wired their cash surplus (mainly clients' deposits) to the groups' cash pool in the UK. The Belgian curator/curateur is investigating a € 5M cash transfer just two weeks before THC UK went bankrupt.

Flanker2
Posts: 1724
Joined: 05 Dec 2012, 23:15

Re: Brussels Airlines in 2020

Post by Flanker2 »

Passenger wrote:
27 Jul 2020, 16:42
Flanker2 wrote:
27 Jul 2020, 01:45
Another question is how long LH will last with their 9 billions. I don't think that they'll last much longer than the Spring of 2021.
Another one of those Nostradamus predictions that will go lost in the www basements. Though predicting the Lufthansa bankruptcy surpasses your prediction, in 2014, that Brussels Airlines would cause an Ebola pandemy because they kept flying to Africa (on request of the medics) when the continent was hit.

Flanker2 wrote:
27 Jul 2020, 01:45
If the Parent Company goes under, all subsidiaries go under. We've seen that recently with Thomas Cook.
Wrong. Subsidiaries can survive when their parent company goes under. It depends on the commitments (example: bonds, bank guarantees) and the rights that the parent company has (example: Apple Store).

Thomas Cook Belgium went bankrupt because the Belgian nv/sa had wired their cash surplus (mainly clients' deposits) to the groups' cash pool in the UK. The Belgian curator/curateur is investigating a € 5M cash transfer just two weeks before THC UK went bankrupt.

SN and Gustin put Belgium at risk during the Ebola crisis and 6 years later SN needs to be rescued to avoid bankruptcy anyway, so that risk was in the end unnecessary and wouldn't have changed a thing in SN's trajectory. So my prediction was right, it was unnecessary risk and it should have been avoided.
The Belgian government took the same risk again with Covid and this time we are paying a high price.
I'm not sure there s anything for you to brag about here.

When the parent company goes under, meaning that they fail financially, by definition all subsidiaries do as well, because a parent company is the sum of all subsidiaries and eventual core activity.
In bankruptcy some subsidiaries or even the parent company can then be sold in bulk or as separate entities and keep living on under new ownership, but that doesn't change the fact that they have to go through a bankruptcy process.

Mark March 1st 2021 on your calendar. If LH isn't begging for more money by then, I'll eat my hat.

Matt
Posts: 132
Joined: 14 Nov 2018, 09:20

Re: Brussels Airlines in 2020

Post by Matt »

Flanker2 wrote:
27 Jul 2020, 19:49

Mark March 1st 2021 on your calendar. If LH isn't begging for more money by then, I'll eat my hat.
For the love of God, someone, SCREENCAP THIS

teddybAIR
Posts: 1613
Joined: 02 Mar 2004, 00:00
Location: Steenokkerzeel
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Re: Brussels Airlines in 2020

Post by teddybAIR »

Flanker2 wrote:
27 Jul 2020, 19:49
When the parent company goes under, meaning that they fail financially, by definition all subsidiaries do as well, because a parent company is the sum of all subsidiaries and eventual core activity.
If 'goes under' means 'go into bankrupcy' then this statement is factually wrong. If a subsidiary is a seperate legal entity, then bankrupcy of a parent company has no automatic repercutions on the financial viability of the subsidiary. Examples we all know well are Sabena/DAT/Sobelair/Sabena Technics/etc., Swissair/Crossair. Sometimes it is even one of the contributing factors why the construction of a seperate legal entity is chosen in the set-up of the activities: to build financial circuit breakers that avoid insolvency/bankrupcy to affect the entire group.

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sn26567
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Re: Brussels Airlines in 2020

Post by sn26567 »

As of 3 August, THE LOFT and Lexus lounges will open again, with limited opening hours: Monday - Friday from 06h30 to 18h30. They've implemented a series of measures, including 1.5m distance between seating and an adapted food and beverage service.
André
ex Sabena #26567

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