Air Belgium declares bankruptcy. The airline will be taken over by a new owner

On Wednesday, April 30, Air Belgium declared bankruptcy. However, the Belgian bankruptcy court approved the takeover of part of the cargo line by the French CMA CGM Group, which confirmed the purchase on May 2. The new owner has received the necessary licenses from the Belgian civil aviation authorities, which will allow it to operate flights.

Air Belgium bankruptcy

Air Belgium aspired to achieve a significant position in the market of low-cost airlines offering long-haul flights. However, the carrier quickly suspended its plans, citing competition from traditional carriers and the inability to operate long-haul flights on a low-cost basis.

Despite withdrawing its outdated Airbus A340s and introducing more modern A330-900s, as well as transforming its business model to cargo transport and ACMI services, Air Belgium was unable to improve its financial situation. The company's problems only deepened and the expected profits did not materialize. The Belgian carrier began to struggle with growing debt and the prospect of bankruptcy. As a result, the company's management decided to seek court protection and filed for restructuring.

Comprehensive restructuring of Air Belgium

Air Belgium's assets and liabilities will be taken over by the French cargo group CMA CGM. As a result of the transaction, slightly more than half of the Belgian operator's employees, mainly cabin crew, will be laid off. According to CMA CGM, 124 jobs have been retained, including 72 pilots.

According to Air Belgium, “this transfer remained the only viable solution after all other rescue options had been explored,” CEO Niky Terzakis explained in an official statement.

“We would have liked history to take a different turn, but we are happy for those who are staying - CMA CGM is a solid group capable of developing its cargo business,” added Mickael Bonneau, permanent secretary of the CGSLB.

Move in line with CMA CGM's strategy

The acquisition of Air Belgium's assets and liabilities ensures that the airline's brand will be maintained. It will continue to operate as part of CMA CGM's specialized air freight division, retaining the employment and experience of its Belgian teams. At the same time, the carrier will maintain an air cargo network that meets market requirements. The airline will also continue to operate its fleet of four aircraft: two Airbus A330-200Fs and two Boeing B747-8Fs.

This transaction is in line with CMA CGM's strategy. The French group aims to offer European customers comprehensive and flexible logistics solutions in the face of global logistics challenges.

It is worth mentioning that CMA CGM and Air Belgium have already cooperated in 2021-2023. At that time, the Belgian carrier operated flights for the French company when it did not yet have its own line and air operator's certificate.