Swissair cancels flights to Brussels amid Belgian anger

Swissair owes Belgium's Sabena SFr200 million Keystone Archive

Swissair said on Tuesday it had cancelled flights to Brussels but all other flights were operating as normal. The cancellation of flights to the Belgian capital comes a day after the company reneged on a deal to take part in the re-capitalisation of the ailing Belgian carrier.

Swissair’s financial collapse on Monday came on the day it was to invest SFr200 million as past of an agreement with the carrier’s other shareholder, the Belgian government.

“We don’t comment on security issues,” said a company spokesman when asked if Swissair was afraid its planes might be impounded if they flew to Brussels.

Belgium said it was astonished by Swissair’s move and is threatening to revive legal action against the Swissair Group. It has also pledged to find bridge financing, though it is prevented from bailing the company out itself because of tough European Union competition rules.

“Just because a company tries to get bankruptcy protection does not mean that its obligations fall by the wayside,” Belgian minister, Rik Daems said on Monday.

Sabena strike suspended

Meanwhile, Sabena pilots have suspended their four-day strike called to protest a restructuring plan that would cut more than 10 per cent of staff, sell off assets and reduce the fleet to try to make the airline profitable by 2005.

“This delay of 24 hours is to allow the board of directors and its political partners to fundamentally revise the business plan which would be disastrous for Sabena,” said a pilots’ association statement.

The Belgian government has repeatedly warned that the airline is set to run out of cash within weeks and, like Swissair, its situation has been exacerbated by the attacks in the United States.

swissinfo with agencies