Sabena, Belgium's ailing airline, sought protection from creditors Wednesday, and the Belgian government provided a US$115 million bridge loan for one month to try to salvage at least part of the airline.
Sabena's decision to seek court protection followed Swissair's announcement on Tuesday that it would not pay its share of a US$395 million rescue package it promised Sabena in July.
"This was the last straw," said Wilfried Remans, a spokesman for Sabena. The airline's pilots had been on strike for four days before the Swissair decision to back out of the rescue plan, costing Sabena US$2.7 million a day. Other recent strike actions were discouraging travelers from making reservations on Sabena even before the attacks on Sept. 11, Remans said.
Still, unlike Swissair, which owns 49.5 percent of the Belgian carrier, Sabena continues to fly. "We have seen at least 20 bookings on Sabena flights today," said Francine Decraen, a travel agent with Carlson Wagonlit in Brussels.
And despite their partnership, Sabena is refusing to honor Swissair tickets for its flights. "Sabena is not helping Swissair in any way," said Monica Bielsa, a saleswoman for all airlines in the Qualiflyer group alliance, which includes Swissair and Sabena.
The Belgian government's loan is intended to allow Sabena enough time to re-create itself, possibly as a European regional carrier, which could protect at least some of its 12,000 jobs.
Prime Minister Guy Verhofstadt of Belgium said Wednesday that with more than 20 million annual passengers at the Brussels airport and with Brussels as the capital of the 15-nation EU, "it should be possible to have a performing airline that specializes in Europe."
The Belgian government, which owns 50.5 percent of Sabena, said that it would take Swissair to court because it had not lived up to its commitments. Swissair bought into Sabena in 1995, promising to turn around the airline, which has turned in an annual profit only once since 1958.
The Belgian government is also in talks with the transport and competition offices of the European Commission to secure approval of its financial assistance to Sabena. The commission, which has been critical of government support for airlines, has asked Belgium to submit its plans.
The commission is expected to decide next Wednesday whether to allow government support to airlines.
"We expect to adopt an EU-wide policy regarding national measures that can be justified by the exceptional circumstances created by the attacks on the United States," said Transportation Commissioner Loyola de Palacio.
Michael Tscherny, a commission spokesman for competition issues, said the commission "does not want to see general support for the airlines as there was in the past." He added that state aid should not be used to keep afloat companies whose problems do not stem just from the Sept. 11 attacks.
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