Insolvency of Air Belgium: Millions in repayments endanger travelers!

Insolvency of Air Belgium: Millions in repayments endanger travelers!

The bankruptcy of Air Belgium has once again highlighted the need for comprehensive insolvency protection for airlines in Europe. How tip-online.at reported that after the airline's bankruptcy, claims totaling around 8 million euros are outstanding, primarily refunds for tickets that were sold through travel agencies and tour operators.

Air Belgium announced in September 2023 that it would cease passenger operations to focus on its cargo and leasing business. The official declaration of bankruptcy took place on April 30, 2025, resulting in job losses and uncertainty for many passengers who now have to wait for uncertain refunds on their tickets.

Consequences for the industry and consumers

With the insolvency, the outstanding reimbursement claims are now subject to the insolvency proceedings. This particularly affects the approximately 10,500 passengers who are stranded following the sudden suspension of flights to South Africa and Mauritius and whose tickets cannot be refunded. Loud thebulletin.be The passenger department of Air Belgium will be completely closed, while parts of the operation will be taken over by the French shipping company CMA CGM. Nevertheless, 124 of the airline's 400 jobs will be retained.

The ECTAA association highlights that such bankruptcies particularly hit small and medium-sized companies, which make up around 98% of travel agents in Europe. Many of these intermediaries face the risk of having to pay outstanding repayments even though they only arrange flights or include them in package holidays. A legal regulation is therefore urgently needed to oblige airlines to provide financial security in the event of insolvency.

Revision of the EU regulation on air passenger rights

The ECTAA sees the ongoing revision of the EU Air Passenger Rights Regulation (261/2004) as an opportunity to address this pressing issue. ECTAA President Frank Oostdam comments that the existing system is inadequate and notes: “Binding mechanisms to protect consumers and intermediaries are needed.”

Overall, Air Belgium's bankruptcy highlights the weaknesses of the current system in terms of protecting passengers and travel agents. It remains to be seen what measures the EU will take to ensure the financial security of consumers in the aviation sector.