Air Belgium Cargo's €800k Dutch-British Acquisition

Air Belgium cargo business acquisition plans by UK firm Air One International Holdings and Dutch company Peso Aviation Management have collapsed after a court revoked the takeover process.

Initially, Air One and Peso received court approval for their proposed acquisition of the struggling Air Belgium cargo business in December. However, media reports indicate that the Nivelles enterprise court revoked the acquisition process on March 6.

The acquisition involved securing the necessary operating and aviation licenses from Belgian authorities. Peter Scholten of Peso was to own 51% of the newly created company, Air One Belgium (AOB), while Air One was to own 49%.

The company aimed to acquire Air Belgium’s cargo business assets, contracts, and essential personnel.

In September 2023, Air Belgium announced its decision to discontinue its passenger business to focus exclusively on “cargo and ACMI for passenger and cargo flights” due to economic challenges and debt. While undergoing judicial restructuring, the airline sought investors for financial stability.

Consortium Acquisition Challenges

The consortium offered €800,000 for Air Belgium’s cargo business, exceeding asset valuation and planning to add two aircraft to the fleet. However, the sale required multiple approvals, including from the Directorate General of Civil Aviation, the Nivelles Business Court, and Chinese shareholder Sichuan Airlines, which leases two aircraft to Air Belgium.

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The British partner, Air One International Holdings, claims to manage the fifth-largest fleet of wide-body cargo aircraft globally. Their focus on freight aligns with the strategy to streamline Air Belgium’s operations under new management. The deal has generated mixed public sentiment.

In the Aviation24.be forums, one user commented, “I hope the trade court will look at the interests of all creditors instead of a foreign cargo airline aiming for a cheap deal.”

The consortium’s acquisition retains 147 jobs, leaving 202 employees, including 130 cabin crew, jobless, described as a “social bloodbath.”

Despite the setback, the consortium’s plans to integrate two additional Boeing 747-400F cargo aircraft by 2025 indicate their commitment to growth and capturing more market share by enhancing transport capacity and operational efficiency. As the situation unfolds, stakeholders remain cautious about the future of Air Belgium’s cargo operations amidst ongoing financial challenges and restructuring efforts.