European regulators have approved a €290m (£261m) rescue package for Belgian flag carrier Brussels Airlines in a bid to stabilise its finances as it deals with the impact of the Coronavirus pandemic.
The bailout – which was previously approved by the German Economic Stabilization Fund – forms part of a wider €460m (£415m) “Stabilisation Package” that includes an additional €170m (£154m) from Lufthansa Group, the airline’s parent company.
Dieter Vranckx, CEO of Brussels Airlines commented: “With this news, we [can] finally conclude the three pillars of our survival and long-term competitiveness. We are relieved that the execution of the financial transaction can take place [and] 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.”
The carrier says the package will cover in part, the losses it has incurred due to the crisis and secure at the same time, thousands of direct and indirect jobs linked with the firm’s activities.
In May, Brussels Airlines announced plans cut up to 25% of its workforce and reduce its fleet by 30%.
Founded in 2002, the operator currently has over 4,000 employees and 48 aircraft which in normal times it uses to operate around 250 flights per day, flying more than 10 million passengers every year from Brussels Airport.