Sabena files for bankruptcy

Sabena has filed for bankruptcy at Brussels commercial court.

Chairman Fred Chaffart has said the move is down to the airline's increasingly bad results.

He also said plans were being developed with Belgian investors, financial institutions and Virgin Express Holdings to start a smaller airline focused on Sabena's regional subsidiary DAT.

Mr Chaffart said a bridging loan of £77m granted to Sabena had not yet been used, and could be drawn on to help launch the new company.

Referring to the proposed new airline, he said: "The size will be subject to our means. The more means we have, the more we can do."

Mr Chaffart said Sabena subsidiaries like Sobelair, Sabena Technics, SSES, DAT, BFSC, Atraxis Belgian and the Sabena Hotels would continue to operate normally "in principle".

But DAT flights will remain grounded until it can find alternatives to services provided by Sabena, such as baggage handling.

Sabena personnel have been asked to stay at home today as all European and intercontinental flights have been suspended.

Mr Chaffart blamed Sabena's demise on its continued lack of profitability; the aggressive expansion strategy of its parent Swissair Group, whose management he described as "disastrous"; strikes; and the general crisis in the aviation industry.

He confirmed that police had been granted access to Sabena files by a Belgian court following a complaint by Sabena Technics employee Philippe Doyen relating to an order for an Airbus fleet placed at the request of Swissair.