HERMAN DE WULF / BRUSSELS
The planned merger between Brussels-based airlines Virgin Express and SN Brussels Airlines has collapsed, after the two carriers concluded that their operations were too different. SN was until recently DAT, the regional subsidiary of bankrupt flag carrier Sabena, which was relaunched as a new Belgian national airline.
Virgin Express says that SN's capital is insufficient to support its operations plan. Virgin Express will "continue as a low-fare operator serving the business and leisure markets", while SN will concentrate on the business market, offering daily high-frequency services to 35 European cities, as well as to Africa from next month.
The two airlines have already integrated schedules to avoid competing on certain routes and SN is buying capacity on Virgin Express flights to London Heathrow, Barcelona and Rome Fiumicino, as Sabena did before its demise.
SN, which operates 32 BAE Systems Avro RJ85/100s and BAe 146 regional jets, may take up to 10 larger ex-Sabena Airbus A319s for some routes. It will also lease two ex-Sabena A330-300s from a new Belgian airline being formed by Victor Hasson and Georges Gutelman, previously behind Belgian carriers Trans European Airlines and City Bird.
SN will wet-lease the aircraft from the start-up, temporarily named "Birdy Airlines", to operate on African routes from 26 April.
VG Airlines, a new Belgian long-haul carrier being formed to begin scheduled services between Brussels and the USA, has secured a new shareholder, Belgium's Group Borr‚. The investment doubles VG's capital from €1.25 million ($1.1 million) to €2.5 million.Source: Flight International
