Following a series of external events that have weakened the company in recent years (COVID, the war in Ukraine, soaring fuel prices, inflation and falling consumer purchasing power), and in view of the current instability of the socio-economic and geopolitical environment, Air Belgium’s Board of Directors – which met today - has decided to review the company’s development strategy. It wishes to concentrate henceforth on its two growth-generating B-to-B activities, namely cargo and ACMI (leasing between airlines) for passenger and cargo flights, and to discontinue its own Passenger business, which in the face of increased competition is proving to be chronically unprofitable to date.

A change of strategy and growth based on B-to-B

Faced with a more than unstable socio-economic and geopolitical environment and in view of the fact that an airline has to plan for cycles of 3 to 5 years, Air Belgium’s Board of Directors has taken a number of decisions to ensure the long-term viability and growth of the company which has a staff of 500 people, namely to:

1. Concentrate on the two profitable lines of business that offer growth prospects: The activities of cargo and ACMI (Aircraft, Crew, Maintenance and Insurance, or wet lease), i.e. the leasing of aircraft between airlines for passenger and cargo flights, constitute two profitable lines of business with growth prospects.

2. Discontinue the Passenger business: despite the many investments by Air Belgium in recent years and the strengthening of commercial initiatives, the Passenger business is still unprofitable. After numerous studies, Air Belgium’s Board of Directors reached the conclusion that turning a profit on this front would require substantial investments in addition to those already made in recent years, which has not been possible.

3. Initiate judicial reorganisation proceedings by way of amicable agreement to ensure the company’s long-term viability and growth and to give it time to reorganise internally around these two segments.