Latest news with #AirBelgium
Yahoo
22-05-2025
- Business
- Yahoo
Air Belgium has gone bankrupt, and thousands of passengers are unlikely to get refunds
A travel agency group is calling for EU law to be changed after a Belgian airline was liquidated last month, leaving 'thousands unlikely to receive refunds', and putting the financial burden on travel intermediaries. Air Belgium, a cargo airline that used to run passenger flights, has been taken over by a shipping company after the company fell into financial hardship and was liquidated. The airline announced on 30 April that a business court has approved CMA CGM group, which has deals in sea, land and air logistics, to take over the airline's cargo operations. As a result, the airline was placed into liquidation by the same court that approved the takeover. CMA CGM will continue to focus Air Belgium's activities on air freight, meaning 124 jobs, including 74 pilots, will be preserved. Meanwhile, other travel industry players have been left unsatisfied by how Air Belgium's bankruptcy was handled. The European Travel Agents' And Tour Operators' Association (ECTAA) released a statement on 15 May demanding urgent airline insolvency protection, claiming the bankruptcy has exposed travel agents, tour operators and customers to millions in losses. The association said the liquidation of Air Belgium has 'left nearly €8 million in outstanding passenger refund claims, of which more than €5 million was sold through travel intermediaries (travel agents and tour operators).' The airline initially ceased all scheduled passenger flights in September 2023 and shifted towards cargo and charter operations. At the time, Air Belgium said that passengers who had flights cancelled would be reimbursed 'as a matter of priority in the scope of the proceedings.' However, now that Air Belgium has gone bankrupt, the ECTAA said 'thousands of passengers are unlikely to receive refunds for their cancelled flights, with the remaining claims now part of the bankruptcy proceedings.' In a statement on the company's liquidation, Niky Terzakis, CEO of Air Belgium, said: 'Of course, we would have preferred a different outcome for our passenger operations, which impacted some of our employees and customers. 'However, this transfer was the only viable option after all other rescue paths were explored.' The ECTAA explains that when a travel intermediary sells a flight ticket as part of a package and the airline goes bankrupt, the package organiser is required by law to provide an alternative ticket to customers. However, there is no real prospect of recovering the original funds from the insolvent airline. 'This places an unfair financial burden on travel intermediaries, who are left to absorb the losses caused by airline failures,' it said. Air Belgium's liquidation has coincided with the Council of the European Union's recent discussions around the revision of the Air Passenger Rights Regulation. Due to this, the ECTAA is currently seizing the moment and urging policymakers to include measures guaranteeing the refund of ticket prices when flights are cancelled due to an airline ceasing operations or going bankrupt. Frank Oostdam, President of ECTAA, said: 'The Air Belgium bankruptcy is yet another stark reminder that the current system leaves both consumers and travel intermediaries exposed to unacceptable risks. 'Airlines must be required to provide financial guarantees to cover their liabilities in case of insolvency.' Mr Terzakis, CEO of Air Belgium, also explained why Air Belgium has struggled to survive and its move to being taken over by the shipping giant. 'Since its creation, Air Belgium has had to face a series of challenges, including several years of global crises brought on by COVID-19, the war in Ukraine, and others,' he said. 'The company took every necessary measure and did all it could to ensure its survival, despite the many obstacles. I am extremely proud of our staff for their loyalty, expertise, energy, and unwavering commitment. 'This is exactly what CMA CGM Group recognised in choosing to trust us with this takeover. CMA CGM is a dynamic and ambitious group with a strong position in the market. I believe our team will be an added strength.' 'The successful completion of this transfer was also made possible thanks to the cooperation of all stakeholders, including trade unions, the relevant Belgian authorities, suppliers and clients.' 'The preservation of jobs linked to cargo operations and the development of freight activities from our country offer encouraging prospects for the future and represent good news for the Belgian aviation sector.' The UK's Civil Aviation Authority states that if you have booked flights or a trip that includes flights with a travel firm that holds an Atol (Air Travel Organiser's Licence), the travel firm is responsible for your flight arrangements. It must either make alternative flights available for you so that your trip can continue or provide a full refund. If you are abroad, you should make arrangements to bring yourself home at the end of your trip. In terms of travel insurance, airline financial failure or insolvency is rarely included on most policies, so it is important to check if your package is Atol protected. The Independent has contacted Air Belgium for comment.
The Independent
22-05-2025
- Business
- The Independent
Air Belgium has gone bankrupt, and thousands of passengers are unlikely to get refunds
A travel agency group is calling for EU law to be changed after a Belgian airline was liquidated last month, leaving 'thousands unlikely to receive refunds', and putting the financial burden on travel intermediaries. Air Belgium, a cargo airline that used to run passenger flights, has been taken over by a shipping company after the company fell into financial hardship and was liquidated. The airline announced on 30 April that a business court has approved CMA CGM group, which has deals in sea, land and air logistics, to take over the airline's cargo operations. As a result, the airline was placed into liquidation by the same court that approved the takeover. CMA CGM will continue to focus Air Belgium's activities on air freight, meaning 124 jobs, including 74 pilots, will be preserved. Meanwhile, other travel industry players have been left unsatisfied by how Air Belgium's bankruptcy was handled. The European Travel Agents' And Tour Operators ' Association (ECTAA) released a statement on 15 May demanding urgent airline insolvency protection, claiming the bankruptcy has exposed travel agents, tour operators and customers to millions in losses. The association said the liquidation of Air Belgium has 'left nearly €8 million in outstanding passenger refund claims, of which more than €5 million was sold through travel intermediaries (travel agents and tour operators).' The airline initially ceased all scheduled passenger flights in September 2023 and shifted towards cargo and charter operations. At the time, Air Belgium said that passengers who had flights cancelled would be reimbursed 'as a matter of priority in the scope of the proceedings.' However, now that Air Belgium has gone bankrupt, the ECTAA said 'thousands of passengers are unlikely to receive refunds for their cancelled flights, with the remaining claims now part of the bankruptcy proceedings.' In a statement on the company's liquidation, Niky Terzakis, CEO of Air Belgium, said: 'Of course, we would have preferred a different outcome for our passenger operations, which impacted some of our employees and customers. 'However, this transfer was the only viable option after all other rescue paths were explored.' The ECTAA explains that when a travel intermediary sells a flight ticket as part of a package and the airline goes bankrupt, the package organiser is required by law to provide an alternative ticket to customers. However, there is no real prospect of recovering the original funds from the insolvent airline. 'This places an unfair financial burden on travel intermediaries, who are left to absorb the losses caused by airline failures,' it said. Air Belgium's liquidation has coincided with the Council of the European Union's recent discussions around the revision of the Air Passenger Rights Regulation. Due to this, the ECTAA is currently seizing the moment and urging policymakers to include measures guaranteeing the refund of ticket prices when flights are cancelled due to an airline ceasing operations or going bankrupt. Frank Oostdam, President of ECTAA, said: 'The Air Belgium bankruptcy is yet another stark reminder that the current system leaves both consumers and travel intermediaries exposed to unacceptable risks. 'Airlines must be required to provide financial guarantees to cover their liabilities in case of insolvency.' Mr Terzakis, CEO of Air Belgium, also explained why Air Belgium has struggled to survive and its move to being taken over by the shipping giant. 'Since its creation, Air Belgium has had to face a series of challenges, including several years of global crises brought on by COVID-19, the war in Ukraine, and others,' he said. 'The company took every necessary measure and did all it could to ensure its survival, despite the many obstacles. I am extremely proud of our staff for their loyalty, expertise, energy, and unwavering commitment. 'This is exactly what CMA CGM Group recognised in choosing to trust us with this takeover. CMA CGM is a dynamic and ambitious group with a strong position in the market. I believe our team will be an added strength.' 'The successful completion of this transfer was also made possible thanks to the cooperation of all stakeholders, including trade unions, the relevant Belgian authorities, suppliers and clients.' 'The preservation of jobs linked to cargo operations and the development of freight activities from our country offer encouraging prospects for the future and represent good news for the Belgian aviation sector.' The UK's Civil Aviation Authority states that if you have booked flights or a trip that includes flights with a travel firm that holds an Atol (Air Travel Organiser's Licence), the travel firm is responsible for your flight arrangements. It must either make alternative flights available for you so that your trip can continue or provide a full refund. If you are abroad, you should make arrangements to bring yourself home at the end of your trip. In terms of travel insurance, airline financial failure or insolvency is rarely included on most policies, so it is important to check if your package is Atol protected.
Yahoo
30-04-2025
- Business
- Yahoo
CMA CGM Air Cargo finalizes takeover of Air Belgium
CMA CGM Air Cargo, the airline subsidiary of the French ocean shipping and logistics conglomerate, has expanded its fleet to nine aircraft by officially taking control of Air Belgium and taking delivery of another 777 freighter from Boeing. A Belgian court late last month approved the distressed sale of Air Belgium to CMA CGM Group. The company announced Wednesday that it has completed the transfer of Air Belgium's assets from a liquidator and will continue to operate Air Belgium as a separate brand from Brussels and Liège airports. Air Belgium brings two Airbus A330-200 medium-widebody freighters and two Boeing 747-8 freighters to the CMA CGM portfolio. CMA CGM said it has retained 124 Air Belgium employees, including 72 pilots. The acquisition enables CMA CGM to offer more air logistics choices to European cargo owners and freight forwarders. Hongyuan Group in China acquired 49% of Air Belgium in 2022. Air Belgium has been operating its fleet for the logistics provider. Air Belgium complements CMA CGM Air Cargo's operations at Paris-Charles de Gaulle airport. The airline operates regular service with two Boeing 777 cargo jets to Hong Kong and Shanghai and one A330 aircraft to Zhengzhou, China. CMA CGM Air Cargo also controls two factory-built Boeing 777 freighter aircraft that are operated by New York-based Atlas Air on trans-Pacific routes. Air Belgium was instrumental in establishing CMA CGM Air Cargo in 2021. CMA CGM acquired four A330 cargo jets and hired Air Belgium to fly them until early 2023, when it obtained its own French air operator certificate and moved operations to Paris. Meanwhile, CMA CGM said it has established an air hub at Chicago O'Hare International Airport, a move that was telegraphed in March without a timetable. The reality is less significant than CMA CGM suggests because the company does not appear to have undertaken any capital investment in a new facility to be or leasing ramp space for aircraft from an existing cargo handler at the airport. The Chicago Department of Aviation was not able to confirm any enhanced CMA CGM freighter schedule or footprint at this time. Atlas Air uses O'Hare as a base for pilots to pick up assigned flights. CMA CGM Air Cargo last fall placed a new Boeing 777 with Atlas to operate on its behalf across the Pacific Ocean. A CMA CGM spokesperson said in an email message the plane now connects Shanghai and Chicago four times per week, but the Flightradar24 aircraft tracking site shows the plane predominantly operates between Hong Kong, Seoul, South Korea, and Chicago, with occasional stops in other Chinese cities and in Miami. The airline now says Atlas Air is operating a second branded 777 freighter out of Chicago. Aviation databases show Atlas Air accepted the new freighter in late March and is operating it between Seoul, Hong Kong and Chicago three times per week. CMA CGM expects to receive three more 777s from Boeing this year, with flying outsourced again to Atlas Air from its Chicago base. Atlas Air also flies five Boeing 777 cargo jets for Mediterranean Shipping Co., another European ocean carrier with a startup cargo airline (MSC Air Cargo). Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Air cargo faces $22B revenue hit when China tariff exemption ends CMA CGM subsidiaries augment air cargo capacity in different ways The post CMA CGM Air Cargo finalizes takeover of Air Belgium appeared first on FreightWaves.
Reuters
30-04-2025
- Business
- Reuters
French shipping giant CMA CGM offers to buy Air Belgium
PARIS, April 30 (Reuters) - French shipping giant CMA CGM announced on Wednesday an offer to buy Air Belgium, which would strengthen CMA CGM's presence in the aviation sector. CMA CGM, which also owns an 8.8% stake in Air France KLM ( opens new tab, said it would keep the Air Belgium brand and that its takeover would safeguard 124 jobs at Air Belgium.
