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crewrest
6th Nov 2001, 18:02
From the London Evening Standard.



VIRGIN Express, the Belgian-based airline part-owned by Sir Richard Branson's Virgin group, has pulled out of talks with Sabena, effectively dashing what had been seen as the last chance to prevent the ailing Belgian airline's collapse.

The discount airline had been interested in buying certain assets of the Belgian flag-bearer and its operations. Such action could safeguard more than 3,000 jobs. But, Virgin Express said: 'In the absence of an agreement with Sabena we now believe that it will be in the best interest of the travelling public for Virgin Express to pursue (an) independent plan. The plan presented to us by Sabena, in our view, could put the future of our staff at risk.'

Virgin Express, which had been expected to create a new airline with Sabena's short-haul subsidiary, Delta Air Transport, said it was still willing to listen to any other proposals from Sabena or the Belgian government, Sabena's majority shareholder.

Belgian Prime Minister Guy Verhofstadt was holding crisis talks with Sabena union leaders on Tuesday as the debt-laden airline's services disintegrated ahead of expected liquidation.

The Guvnor
6th Nov 2001, 18:44
The unions - led by BeCA - had apparently been running a 'dirty tricks' campaign trying to frighten VEX's suppliers into forcing VEX to do a deal on Sabena II by saying that if the SN rescue deal collapsed, then so would VEX.

Not exactly the most sensible thing to do to someone that's prepared to throw you a lifeline!

VEX will now just pick up all the routes that they want - along with anything else - on their own terms.

Given that BeCA almost destroyed them a few years ago and forced the closure of VEI, I think that this must give VEX management a rather smug feeling.

Also, in view of today's industrial action by SN employees, it has been reported that the Belgian investors who had been looking at refinancing DAT to take on the allegedly 'profitable' parts of SN have now got cold feet - rather unsurprising, really! :D :rolleyes: :D