From today's ATW Online. If the EU decides that the credit from the Belgian government does constitute state air, the Belgians will be required to withdraw it and it will be all over for Sabena. Given the circumstances, it is highly probable that this may well be the case.
Sabena remains on a "cash only" basis with most suppliers and few bookings are being made.
EC investigating Sabena aid
Dateline: Friday October 05, 2001
European Commission asked the Belgian government for information on the €125 million ($115 million) bridge loan it granted Sabena and for details on the airline's restructuring plan so it could come to a decision "as soon as possible" on whether the loan could qualify as "rescue aid."
The EC added that it did not believe the situations of Sabena or of Swissair to be linked directly to the problems experienced by the airline sector after the terrorist attacks on the US. An ad hoc working group is to present a paper to the EC next Wednesday on the economic effects of the attacks on the airline industry.
The Belgian government said that while it was a "very difficult exercise," it remained hopeful the EC would approve the loan under special rules for the rescue and restructuring of companies in difficulties.
In a statement, Sabena said that its activities continue normally, adding that on
Wednesday, "besides misunderstandings in six UK airports, where flights had to be delayed or even cancelled in order to explain Sabena's situation, no other incidents affected the flight schedule."