27 JUNE 2016

Index


© 2022 Business Travel News Ltd.

Article from BTNews 27 JUNE 2016

VLM files for bankruptcy

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

Index/Home page
 

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum


www.btnews.co.uk