Belgian regional carrier VLM filed for bankruptcy last week. In a statement the company said: "We are sorry to have to inform you that VLM Airlines NV has filed for bankruptcy on Wednesday 22nd June 2016. All flights are cancelled with immediate effect.”
The Antwerp-based Fokker 50 operator, which was founded in 1993, made a loss of €13m (£9.9m, US$15m) last year.
VLM in May applied to an Antwerp court for bankruptcy protection, presenting a turnaround plan that envisaged a return to profit in mid-2017. The court agreed to temporary protection.
But the airline said the court-allotted six-month period of creditor protection would prove insufficient for it to restructure its operations and to raise extra capital.
CEO Hamish Davidson added that the two-week waiting period between the application for creditor protection and its acceptance had seen passengers cancelling bookings.
VLM is said to owe €3m (£2.3m, US$3.4m) to KBC bank as well as an additional €3m to suppliers including Antwerp Airport.
VLM operated 11 Fokker 50s, two of which are leased to CityJet of Dublin and two to Exeter-based flybe.
https://en.wikipedia.org/wiki/VLM_Airlines
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