SWISSAIR HAS at last secured its longstanding ambition of taking a 49.5% stake in Belgian carrier Sabena, giving both airlines the critical mass they have been seeking within Europe.
The deal was agreed between the airlines and the Belgian Government on 4 May, ending at least six months of public negotiations.
The deal gives Swissair a foothold in the European air market to which it is otherwise denied full access because Switzerland is not part of the European Union. For Sabena, the alliance provides a much-needed injection of capital to help reduce debts and continue expansion.
Under the agreement, the airlines will retain their separate identities, names and independent management. The alliance will help to give both national carriers greater weight within a consolidating European airline industry. Together, the airline groups have a combined turnover in the region of $7.5 billion, which would place them in fourth position overall within Europe.
Swissair has paid BFr6 billion ($205 million) for the holding, and will invest a further BFr500 million in non-voting certificates.
The Belgian Government has also promised to invest BFr1.5 billion in the airline over the next ten years, via the Societe Federale d'Investissement (SFI), a Belgian federal finance company.
Swissair is to loan the Belgian Government BFr4 billion, which will enable the SFI to buy back the stake, held by Air France through the Finacta consortium. The consortium paid BFr6 billion for a 37.5% holding in Sabena in 1992 as part of the Belgian airline's survival plan.
The remainder of the Finacta stake, was held by Belgian investors, who will retain an interest in the airline.
Sabena had been looking for a fresh partner for at least a year after Air France ran into trouble and their relationship stagnated.
Source: Flight International
