The EU Commission has approved a €460 million ‘Stablisation Package’ for Lufthansa Group carrier Brussels Airlines.
The bailout – which had already been approved by the German Economic Stabilization Fund – consists of €290 million from the Belgian Federal government and a further €170 million from Lufthansa.
The carrier said that the bailout “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”.
In May Brussels Airlines announced plans to reduce its workforce by 25 per cent, as well as cutting 30 per cent of its aircraft fleet.
Commenting on the news Dieter Vranckx, CEO of Brussels Airlines, said:
“With this news, we 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. 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. For that, I sincerely thank all involved parties.”