An agreement to rescue Brussels Airlines has been reached, the Flemish news outlet VRT NWS announced. It has been agreed that the Belgian government will lend Brussels Airlines €290 million. The loan, which must be repaid by 2026, was granted only in exchange for firm guarantees about the future of the airline. An addition €170 million in cash will be offered by Lufthansa.
The agreement needs to be run through by through Lufthansa’s Board of Directors and the Belgian government no major obstacles are to be expected. The German government, which recently became the largest shareholder of Lufthansa, and the European Commission must also give their green light on the agreement.
The Belgian state will hold two seats on Brussels Airlines’s Board of Directors so that if the commitments are not respected, the Belgian state would take over control on the airline. Deputy Prime Minister and Minister of Finance and Cooperation Development Alexander De Croo reprimanded Lufthansa in the Belgian Parliament during the last discussions held on July 17th.
As a condition, the funds need to remain within Brussels Airlines and not be used by Lufthansa itself or other subsidiaries. Brussels Airlines’ headquarters are to remain in Brussels, and Zaventem must continue to be its hub. The long-haul network must be expanded. Those commitments will be seen as legally binding.
Brussels Airlines will use nearly 70 million euros to pay for its restructuring plan called Reboot+.