Sabena

[The Skylord]

... has just filed for bankruptcy protection.

[SOPS]

Can confirm that BBC world service is reporting at 11.40 Zulu that Sabena has filed for bankruptcy protection. They are also reporting that the Government is offering a "loan" to help them out. How many "loans" are Sabena allowed to have? :confused:

[Mishandled]

I hope they get more help than SR in switzerland (and yes I know that SR not paying the cash to SN helped speed up the current situation at SN)

[Pointy Pilot]

A sad though not unexpected event.

From the BBC:
Sabena files for bankruptcy protection

The Belgian airline Sabena has filed for bankruptcy protection after failing to secure financial assistance from part-owner Swissair.

According to the Belgian government, which owns 50.5% of the airline against Swissair's 49.5%, the airline would go bankrupt without legal protection from its creditors.

For the immediate future, "financial means are there to guarantee normal activities" said Sabena chairman Fred Chaffart, but bankruptcy protection was sought to provide Sabena with a breathing space.
Belgian prime minister Guy Verhofstadt said that the government had provided a bridging loan to the company, and would be examining ways to relaunch it in the near future.

The relaunched airline would focus on short-haul European destinations, Mr Verhofstadt said.

The European Commission said that government aid for Sabena could be waved through under certain circumstances.

Other airline operators have objected to government support for troubled airlines, arguing that such backing would distort competition and give rescued carriers unfair advantages.

Restructuring
On Tuesday night, Sabena's workers overruled pilots' opposition to a restructuring plan that will lead to severe job cuts.

The pilots' resistance to some job cuts was beaten back as the workers grew to realise that all jobs at Sabena would be at risk if the carrier goes bust.

The ailing airline's rescue plan was hammered out during the night, just hours after Swissair acknowledged it was itself close to bankruptcy, washed its hands of its 49.5% stake in Sabena and halted all its flights, leaving thousands of passengers stranded.

Sabena, which had been relying on support from Swissair to dig itself out of a very deep financial hole, would cut 1,400 jobs as part of the rescue plan.

Continuing operations
In a referendum, 57.12% of Sabena's staff voted for a restructuring plan worked out by chief operating officer Christoph Mueller.

Following an overnight crisis meeting, Mr Chaffard said the management "will take all necessary measures to ensure the continuation of operations and guarantee the interests of every financier".
Meanwhile, the Belgian government has threatened to take Swissair to court.
Sabena itself may follow suit.

Resignation
Sabena grounded more than one-quarter of its flights on 1 October as a pilots' strike went into a fourth day in protest against plans to restructure the ailing Belgian airline.
The Belgian Cockpit Association, which represents 900 staff at Sabena, has called for the chief executive to resign and for the airline to abandon plans to cut 2,000 out of 12,000 jobs.
If the pilots' demands are not met, they may push ahead with the strike.

[SOPS]

Have just heard that the Belgian government is going to bail them out Again!!!!!! :confused: :confused:

[FL310]

SOPS, what is wrong with this? There was a payment due from both shareholders, SR and the belg. Government and without this payment SN is out of business. Now, SR does not follow their highflying dreams anymore due to the well known situation. With this happening, the EU law does not allow the Government to provide the input as planned.
The EU has been asked to accept this new situation to be solved on an interim basis with a loan from the Government, drastic measurements in reducing capacity and manpower as an immediate step to be introduce accordingly.
The court has not yet accepted the filing of bancruptcy protection,it will be an interesting day.
Scottish airports told inbound SN aircraft today that they would be impounded to force immediate payment of all bills and any further service would be available only on a cash basis, forcing the aeroplanes to return to BRU.
The BeCA obviously accepted the referendum results as they retreat from any action for the next weeks to come.
Before slamming against these decisions inside Belgium, all discussions need to take a view on the impact a closure of SN would have.
12000 employees are directly effected, this means about 40,000 people if you look at families. The snow ball effect on this means that more than 100,000 people are effected on indirect actions such as less consumption and / postponement and cancellations of planned investments in house renovation, holidays etc. Beside this, the government will be faced with an unemployement rate and costs which no one can predict yet.
There will be as well a knock-on effect on other countries, business will not be the same in and with Belgium as it is now.
Talking about all these things, keep in mind that other airlines use this situation to reduce workforce for the always slightly less busy winter season. According to CNN Lufthansa, British Airways and Air France have announced that passenger figures are down bei 0.8%.....so why are they reducing capacity in 2 digit figure ranges....
It looks to me more as if a lot of companies abuse the situation to cut down on capacity they already thought of doing so before the black September day and they will tell now everyone else that tight situations need the full support of all involved, so duty hours will increase, more minimum rest, more sectors, cut down on other perks etc.
All the news published on radio, TV and all the other media should be carefully analysed before taken for granted. I wish everyone to stay in the job they have, whoever and wherever it is. You will remember these words as soon as March 2002 approaches, there will be a miracle in our industry, all in a sudden the airlines will need more workforce again...well, as it is every year, the summer season demands this.