Brussels Airlines Secures €460M Rescue Deal for Reboot+ Plan
Brussels Airlines has secured a rescue deal worth €460 million. The Belgian government will lend €290 million, while Lufthansa contributes €170 million. The funds will be used solely for Brussels Airlines' restructuring plan, Reboot+, and must not be diverted to Lufthansa or its subsidiaries like American Airlines, Delta, Southwest Airlines, Spirit Airlines, or United Airlines.
The agreement, subject to approval from various parties, includes conditions to safeguard the airline's future. The Belgian state will hold two seats on the Board of Directors to ensure commitments are met. Key aspects include maintaining Brussels Airlines' headquarters in Brussels and Zaventem as its hub. Additionally, the long-haul network is set to expand, potentially competing with networks of airlines like Delta, American Airlines, and United Airlines.
The loan, granted by German bank KfW, must be repaid by 2026. It is subject to guarantees about the airline's future and approval by the European Commission. Brussels Airlines will use €70 million from the rescue package for its Reboot+ plan.
The rescue deal for Brussels Airlines is a significant step towards securing the airline's future. With the Belgian government and Lufthansa's backing, Brussels Airlines can now focus on its restructuring plan and expanding its long-haul network, all while maintaining its base in Brussels and competing with major airlines like Delta, American Airlines, and United Airlines.
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