Air Belgium – which had only been operating for about five years – plans to cease all passenger flights as in favour of its cargo and aircraft leasing operations. The move comes as the ailing airline seeks protection from creditors.
Air Belgium, which has existed since 2016 and offered passenger flights from Charleroi airport since 2018, will now scrap passenger activity entirely. The company was hit hard – first by the Covid-19 crisis and then high fuel costs and inflation following Russia's invasion of Ukraine.
"Passing on the increase in fixed costs in the price of passenger tickets was not an option," the company said in a press release. "That is why Air Belgium took the decision in March to stop flights to unprofitable, highly price-sensitive destinations such as the Caribbean and the French Antilles."
Since the spring of 2023, the focus of passenger flights has been on South Africa and Mauritius. This made aircraft available to use for cargo transport and leasing. The company hoped that this would give it the financial security to continue flying passengers but this has not been the case and passenger flights are now being scrapped completely.
"After several analyses, the board of directors of Air Belgium came to the conclusion that to make this activity profitable, significant additional investments would be needed on top of those made in recent years, which proved impossible."
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To reorganise the airline around the two remaining (and profitable, according to the board) activities and to get its debts under control, the company is asking for creditor protection.
Air Belgium has around 500 employees. It is not yet clear what will be their futures. "The management plans to gradually transfer them to other activities within the company," the company stated in a press release. Yet whether there will be some staff cuts, and how many, is yet to be answered.
What if you booked an Air Belgium flight?
Those who have a flight planned with Air Belgium before 3 October 2023 will remain insured. Return flights will either be provided by Air Belgium itself or through other airlines.
Flights scheduled after 3 October 2023 and already paid for may be cancelled and "refunded on a priority basis," Air Belgium said.
