Brussels Airlines: what’s happening?

The Belgian flag carrier Brussels Airlines has had constant growth and has survived many major issues. Though looking into the future no one is certain what is to come of the Belgian carrier after Lufthansa, the German flag carrier, purchased a majority stake in Brussels Airlines. After taking full control of Brussels Airlines at the end of 2016, Lufthansa announced its plans to integrate the company within its low-cost subsidiary Eurowings, but did not reveal how close the integration would be and whether it would involve the disappearance of the Belgian brand.

In the most recent annual accounts, published in March 2017, the company recorded an operating profit of €20.4m and a net profit of €15m. Brussels Airlines said the airline lost around €100m when the terrorist attacks at Brussels Zaventem Airport, which included a double suicide bombing, took place.

On January 5, Reuters reported that 100 Belgian companies, including Solvay and AB InBev, published an open letter to the Lufthansa Group to convince the holding company to keep the Belgian subsidiary as an independent brand and not to transfer it to Eurowings.

Brussels Airlines has flourished as one of Europe's most successful airlines and has overcome the passenger decrease as a result of the Brussels airport bombing even though it is the airport's biggest user. As Belgium's flag carrier, Brussels Airlines has added many destinations to its network and has continued to meet the demand of Belgian travellers. But with the German carrier Lufthansa acquiring Brussels Airlines in late 2016, Lufthansa has had different plans for Brussels Airlines. Eurowings has been growing its fleet rapidly, thanks to its parent company Lufthansa. The rapid growth has led to the need of new aircraft which Lufthansa is supplying; Lufthansa has found that transferring all aircraft from Brussels Airlines to Eurowings is the most pragmatic solution.

This has received lots of criticism in Belgium and approximately 3500 Brussels Airlines workers have decided to go on strike if the transfer is approved. As a result, Lufthansa has replaced 2 senior positions within Brussels Airlines' management. No one is sure what is to happen to Brussels Airlines and all we can do is wait and see. In my opinion I feel that Lufthansa will prevail as it is the majority stakeholder in the flag carrier.