Agreement on Brussels Airlines rescue plan: €290 million state aid for future guarantees
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    Agreement on Brussels Airlines rescue plan: €290 million state aid for future guarantees

    Credit: Belga

    After negotiating for approximately three months, the Belgian and German negotiating teams reached an agreement about the rescue of Brussels Airlines.

    The Belgian government will lend €290 million to the airline, in exchange for firm guarantees on the future of the company, reports VRT.

    The text will be presented to the management of German parent company Lufthansa later today. The government will still have to give its final approval, as will the European Commission.

    According to sources cited by VRT, it is unlikely that the deal will still be blocked. However, Brussels Airlines can only be 100% sure of the financial support after these approvals.

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    It has been agreed that the Belgian government will provide a €290 million loan, which is to be repaid by 2026.

    Lufthansa itself will also contribute €170 million. Part of this sum will serve to finance the restructuring, while another part will be used to strengthen the capital under pressure from the coronavirus crisis.

    In recent weeks, the financial position of Brussels Airlines came under increasing pressure, and the airline even announced that would temporarily stop expanding its flights and destinations at the beginning of August.

    The Brussels Times