No financial support yet for Brussels Airlines

No financial support yet for Brussels Airlines
Credit: Belga

Talks about Belgian state aid for Brussels Airlines are reportedly on hold amid tensions between the different parties involved.

Lufthansa Group, Brussels Airlines' parent company, asked the Belgian government for €290 million in credit, which Belgium refused as it would have meant injecting money almost straight into Lufthansa, according to Belgian news company LN24.

"The positions are so far apart that the negotiations have been put on hold to allow to ease the pressure," according to LN24. In addition, "the Belgians would like to take a stake in the company in order to be able to take decisions," they said.

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Last week, Belgian daily La Libre Belgique reported that the Belgian government was close to a deal with Brussels Airlines and Lufthansa Group. Belgian Finance Minister Alexander De Croo, who is representing the Belgian government in the talks, refuted this claim on Friday in L'Echo. De Croo "assures us that now is not the time to talk about this issue," L'Echo wrote.

Brussels Airlines and the Lufthansa Group are not the only airlines with problems. Last Sunday, it was reported that Virgin Atlantic is looking for a buyer. The International Air Transport Association (IATA) has predicted that the airline industry will suffer a loss of US $314 billion for 2020.

Jason Spinks

The Brussels Times

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