VLM Airlines files for bankruptcy and sacks staff

VLM Airlines, which operates mainly out of Antwerp Airport in Deurne, has applied for bankruptcy and fired all of its 160 staff. The decision was taken by the administrators appointed to bring the company to a close. All flights are cancelled.

The decision follows a filing at the end of May by the company for protection from its creditors, normally seen as the last step before bankruptcy. The final step was taken on Wednesday, with the company declaring bankrupt the same day.

VLM made a loss last year of €13 million, leaving debts of some €15 million.

The Flemish airline was founded in 1992 by former Vlaams Belang politician Freddy Van Gaever. He sold his holding in 1996 and later stepped down as CEO. Together with partner Carl Legein, owner of The Aviation Factory, Van Gaever has now suggested that he take over VLM.

According to Van Gaever, it would be possible to relaunch the airline in a limited form offering charter flights out of Deurne, or to continue on a more ambitious plan involving flights to regional airports in Southampton, Genoa, Rotterdam and Hamburg. To date, VLM has been flying to Southampton, Hamburg, Dusseldorf and London City.

An administrator will now consider the future of the company, including possible rescue. Flemish mobility minister Ben Weyts said the bankruptcy was “an unfortunate affair” but pointed out that the effects would be limited. It accounted for only 10,000 of the 220,000 passengers passing through Deurne each year.

Photo: Pieter van Marion/Wikimedia