Air Belgium once again hovers on the brink of insolvency, according to a report from L’Echo on Friday. The Nivelles business tribunal has granted the Belgian airline two weeks to resolve its financial woes.
For almost a year, Air Belgium has benefitted from protection against its creditors amidst judicial reorganisation proceedings. However, it has been unable to secure a new investor, a necessity following a 40% drop in turnover due to stopping passenger flights. The company has also reported an annual loss of €22 million.
According to L’Echo, the airline needs an urgent fund infusion of at least €18 million.
On Tuesday, Air Belgium appeared before the Nivelles business tribunal. The tribunal allowed an additional two-week grace period after an unknown investor emerged after the deadline. However, this investor is reportedly only ready to get onboard if there is support from the Walloon government – a proposition that L’Echo speculates is unlikely.
Air Belgium has so far declined to comment on L’Echo’s report.
