The last chapter of Sabena's history started with the European Commission's (EC) July 1995 approval of Swissair parent SAirGroup's purchase of 49.5% of the Belgian carrier. But by January this year, when forced to pay a fifth of a government-sponsored €250 million ($220 million) Sabena recovery package, Swissair was regretting its purchase. Attempts to wriggle out of its promise to buy a further stake ended in a threat by the government to sue the Zurich-based airline.
Swissair had tried to turn the airline around, but in 1998, when Sabena made a profit, pilots and cabin crew revolted against cost cuts.
Swissair was the latest foreign airline brought in to save Sabena. In the early 1990s, British Airways and KLM took 20% stakes each to form Sabena World Airlines. Regulatory hurdles ended the venture a year later, however, leaving the airline to go to the Belgian Government for the first of several "one-off" payments. The EC agreed to $1.8 billion in state aid in 1992, which led Air France to take a 30% stake. Air France convinced Swissair to take over its stake in 1995. Delta Air Lines proposed an alliance in 1998, only to jilt the Belgians for Air France.
Source: Flight International
