Lufthansa (LH, Frankfurt International) is reportedly prepared to either sell Brussels Airlines (SN, Brussels National) or let it go bankrupt if the Belgian carrier fails to reach an agreement with staff on a new collective agreement. The revised deal has been deemed critical to the airline's restructuring.
Belgian daily La Libre Belgique cited anonymous sources as saying that representatives from both Brussels Airlines and its German parent will meet on June 22 to discuss the way forward.
While Lufthansa did not comment on the report, Brussels Airlines dismissed it as speculation.
The Belgian carrier is the last airline owned by Lufthansa without a clear plan for state aid and restructuring. While Swiss (LX, Zurich) received the backing of its own government in late April, Lufthansa's massive EUR9 billion euro (USD10.1 billion) bailout has yet to be approved by its shareholders despite having been cleared by authorities. The package also covers Lufthansa's other German units, including Eurowings (EW, Düsseldorf). Austrian Airlines (OS, Vienna) has also reached an agreement with the Austrian government regarding the terms of a bailout, although its finalisation is contingent on Lufthansa's shareholders approving its German parent's bailout.
The Belgian government has pledged to inject at least EUR300 million (USD335 million) into Brussels Airlines, but the terms of the assistance have not been agreed to as yet.
Brussels Airlines plans to trim its 4,200-odd staff by around 25% in a bid to lower costs and survive a period of diminished demand as the world recovers from the first wave of the COVID-19 pandemic. Labour unions at the carrier, in particular its pilot corps, have opposed the plan.
