Unrest at Brussels Airlines continues, new consultations between unions and management on Monday
The Belgian Daily The time the upcoming meeting is “an ultimate attempt to red the busy summer flights of the financially battered airline.”
The CEO of Brussels Airlines, Peter Gerber, will personally meet at the table on Monday to receive the unions of both the pilots and the cabin crew. “If the talks fail, new strike actions are imminent,” the newspaper writes. “Nerves are tense as work stoppages threaten at the busiest time of the year.”
solace
What is the stake? The unions want the airline’s promise to further reduce the workload of the staff this summer. For that reason, Brussels Airlines has already canceled 148 flights and new staff, but according to the unions, this does not offer enough solace. If the management does not make commitments, new actions will follow, they say.
For Brussels Airlines, the social situation comes on top of the bad financial situation. Society can blame corona, because far before the virus came into view, the numbers were also bad. Since 2010, Brussels Airlines has made a loss for eight years. Shareholders’ equity has shrunk to a negative figure of 390 million euros, while the debt has risen to 732 million euros.
Brussels Airlines, like all airlines, received state aid during the pandemic, in the form of loans, worth 290 million euros. Parent company Lufthansa is celebrating another 170 million.
Ample time was given to repay the government bonds; a start will be made on this only in 2026.
Acidified climate
Peter Gerber has now set himself the target of making a profit again by 2023, but the labor unrest is a big problem for him, because in all cases the costs for Brussels Airlines will increase.
Meeting the requirements contain the management less revenue from the existing staff for the same wages and therefore have to look for more employees, who also have to receive them again. But the derivative of the bonds certainly resulted in new strikes, at all costs. Last week’s three-day work stoppage resulted in damage of around 8 million euros.
The time is skeptical about the future and writes on Saturday: “A persistently sour social climate, severe remediation, hundreds of millions of euros loss, a sky-high debt and a teeth-gritting owner. Can Brussels Airlines get healthy?”