Air Belgium, based in Charleroi, Belgium, has canceled all passenger flights effective October 3, 2023. In the future, the company wants to concentrate on providing freight and ACMI activities. Furthermore, an application for creditor protection was submitted to the responsible court on September 18, 2023.
Air Belgium has been in trouble for a long time. The company repeatedly denied local media reports that spoke of a very strained financial situation. Recently it was even said that a new investor had been found who would give the carrier a helping hand.
Now Air Belgium wants to reposition itself as part of creditor protection proceedings. In order to reduce costs as quickly as possible, all passenger flights on our own account will be stopped on October 3, 2023. Regarding the reasons that led to the lawsuit, the company writes, among other things, that it has been significantly weakened in recent years, for example due to the corona pandemic and the sharp increase in fuel prices after the start of the Ukraine war. You also get the feeling that the galloping inflation has literally devalued purchasing power in the domestic market. This would have a massive negative impact on demand. All in all: The board had no other choice and had to redesign the entire business model in order to save Air Belgium.
They examined all available options, but came to the conclusion that the only option was to discontinue scheduled flights and concentrate on freight and wet lease services. From October 3, 2023, there will no longer be any passenger flights operated on our own account.
The application for creditor protection under Belgian law has already been submitted to the responsible court. It is expected that the formal procedure will begin in the next few days. Air Belgium is hoping for a chance to reposition itself.