EU approves EUR 290m state aid package for Belgium flag carrier

Associated Press has reported The European Commission has approved an injection of USD 290 million of state aid into Belgium´s flag carrier, Brussels Airlines, the company said.

Brussels Airlines, a subsidiary of the SN Group, which is owned by the Lufthansa Group, will receive an EUR 287 million loan payable over six years, as well as an additional EUR 3 million in equity.

The coronavirus outbreak has been a testing period for the aviation industry, leading a number of European governments to step in to save longstanding airline companies from bankruptcy.

The EUR 290 million support package, which mostly takes the form of a loan with subsidised interest rates, includes a minor equity injection, which will provide SN Group, to which Brussels Airlines belongs, with the liquidity that it urgently needs to withstand the impact of the current crisis.

The airline posted a loss of €182 million for the first half of 2020, prompting the company to announce a restructuring that envisaged the axing of a quarter of the firm´s staff with around 1,000 jobs in jeopardy.