The final efforts to help Brussels Airlines survive the crisis were made yesterday in Brussels, culminating in the adoption of a financial plan worth nearly half a billion euros that will be guaranteed by both the Belgian state and Lufthansa. Under the plan, the Belgian state is giving Brussels Airlines a loan of 290 million euros that will have to be repaid by 2026.
The funds will stay within Brussels Airlines and not be passed on to either Lufthansa itself or any other subsidiaries of the German group.
The Germans have promised to keep the hub and the headquarters of Brussels Airlines in Brussels, and to retain the company’s name and its Belgian licence. These commitments are legally binding.
The shares of Brussels Airlines will serve as collateral for the loan. Should Brussels Airlines not reimburse the loan on time, the company ends up in the hands of the Belgian state. The same happens if the above-mentioned commitments are not respected.
The Belgian government is receiving two seats on the board of directors of Brussels Airlines.
The remaining 170 million euros will be financed by Lufthansa. Around 70 million euros of that amount are intended for the restructuring - as a part of which the airline will be obliged to shed several hundred jobs. The whole rescue plan will now have to be approved by the Belgian inner cabinet, the Lufthansa Group, the German government and the European Commission; these steps are expected to be a mere formality.