They've decided to put a stop to their passenger flights so they can focus more on cargo shipping and ACMI services—that's short for Aircraft, Crew, Maintenance, and Insurance. If you've booked a flight with them that's scheduled to take off after October 3, 2023, you'll likely get your money back as a priority refund, they say.
This big move was announced by their board of directors on September 18, 2023, and it's really about tackling their ongoing struggle to turn a profit. Apparently, they've been finding it tough to keep up with the competition in the passenger aviation sector, not to mention dealing with other events that have been putting the squeeze on their finances.
In addition to this, the board's taking some legal steps to sort out their debt and get the company back on its feet. They're entering a judicial reorganization process to renegotiate with creditors and basically get their finances in order.
The idea is to ditch the parts of the business that are dragging them down and focus on more profitable avenues. All in all, they're optimistic that this will set the stage for a more sustainable future for the company.
Good news for the staff, though. If you're working in their passenger flight division, you won't be out of a job. The plan is to gradually move you over to roles in their cargo and charter services.
Now, all this has also caught the eye of some big players in the Walloon region of Belgium. They've got a significant chunk of money invested in Air Belgium—think €15.7 million in capital, €1.8 million in loans, and €3.5 million in guarantees. Wallonie Entreprendre, a key economic entity in Wallonia, even owns a 33% stake in the airline.
A bit of a throwback here: Air Belgium started off in 2016, originally aiming to link Belgium with Asian destinations. But as of 2022, they changed tack and shifted focus towards Africa, with routes to places like South Africa and Mauritius. So yeah, they've been through quite a journey, and it looks like they're steering in a new direction yet again.
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