Reports: VLM Airlines files for creditor protection

Belgian regional VLM Airlines has filed a formal application asking for creditor protection for 6 months to avoid bankruptcy, a source close to the situation confirmed following media reports in the Belgium and the Netherlands. A hearing will be held May 25. Several media outlets have reported that VLM said in a that “the judicial reorganisation [will give] the necessary breathing space to primarily repay historical debts to suppliers and to ensure the smooth running of daily operations.” CE Hamish Davidson was quoted in Belgium’s De Tijd as saying, “VLM Airlines NV is currently undergoing a major restructuring to secure the company's future and its employees.” The news came as a surprise, as the company said April 11 that data showed an “improving trend with a further improvement in load factors in the first week [of April] to 50%”. <br/>