(TAN): The EU Commission has approved a stabilization package to secure the future of Belgium’s Brussels Airlines.
On July 24, Brussels Airlines announced that it had reached an agreement with the Belgian government and Lufthansa to secure the future of Belgium’s home carrier and herewith the long-term development of the airline through a stabilization package. On August 17, the package was approved by the German Economic Stabilization Fund.
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The stabilization package of EUR 460 million (USD 543.2 million) — EUR 290 million from the Belgian government and EUR 170 million from Lufthansa — covers in part the losses incurred by Brussels Airlines due to the crisis and secures at the same time tens of thousands of direct and indirect jobs that are linked to the activities of Brussels Airlines. The package enables the airline to finance its turnaround plan.
Brussels Airlines CEO Dieter Vranckx said, “We are relieved that the execution of the financial transaction can take place. We will now shift all our focus towards a timely implementation of our turnaround plan Reboot Plus. Thanks to the support and trust we receive from our shareholder Lufthansa, the Belgian government and from all our employees, we can create a strong and competitive Brussels Airlines with long-term perspectives, an important engine for the Belgian economy.”
Brussels Airlines is part of the Lufthansa Group and is a member of Star Alliance. The company was founded in 2002 and is 100% owned by Deutsche Lufthansa.
