Belgium and Lufthansa agree rescue for Brussels Airlines
The Belgian authorities have struck a deal with Brussels Airlines and its parent company Lufthansa of Germany with regard to the rescue of the Belgian flag carrier.
The deal still needs to be endorsed by the cabinet, but if this happens the ailing airline will receive a 290 million euro loan in return for strong guarantees for the airline’s future in Belgium.
Talks between the Belgian government and its parent company were making little headway and here preparations were ready for a ‘No Deal’. But a deal has now materialised and this will now be put to the Lufthansa board. The European Commission too must approve the deal.
Brussels Airlines will have to repay the loan by 2026. Lufthansa is also committed to injecting 170 million euros. 70 million euros will be spent on restructuring, the rest on financial consolidation.
The Belgian government insisted on strict conditions anchoring the company in Belgium and guaranteeing its future. The airline is now wholly German-owned.
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