Brussels Airlines faces biggest restructuring plan in Belgian aviation history

The Brussels Airlines works council is being informed that the company will have to make savings worth 160 million euros each year after 2022.  This represents a 10% cut in its budget.  The impact on jobs and services is as yet unclear.

Next summer the company will continue to serve its existing destinations.

Brussels Airlines’ restructuring plan has been dubbed “Reboot”.  The airline’s parent company Lufthansa of Germany wants it to post an 8% profit margin on turnover by 2022. At present the profit is practically zero.  Only one in 154 seats makes a profit for the company. The demise of Thomas Cook also has a financial impact believed to total some 12 million euros.

The 8% target is seen as a symbolic target in aviation.  It will allow the company to invest and renew its fleet.  At present all investments, e.g. in the long haul fleet, are currently borne by the parent company.

Staff leaving the company voluntarily will receive extra financial support and help in finding a new job. Mass redundancies are not planned for the minute.  Unions and management are now expected to discuss a voluntary departure plan. Unions are willing to talk, but say they are completely in the dark with regard to the number of jobs that will have to go in each department.  

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