Swissair and Belgian government strike Sabena deal

THE SWISSAIR Group has come to an agreement with the Belgian government over its investment in troubled airline Sabena.

The two sides have agreed to invest a total of £264 million in Sabena over the next two years. Swissair will pay 60% of the total and the Belgian government 40%.

In return, Swissair has been released from its commitment to increase its stake in Sabena from 49.5% to 85%.

Swissair will also take over Sabena’s order for nine Airbus aircraft.

It is hoped the extra investment will be enough to turn the loss-making Sabena into a profitable airline.