Sabena gets month of bankruptcy protection

Belgium's struggling flag carrier Sabena obtained bankruptcy protection for one month from a Brussels court this morning.

Belgium's struggling flag carrier Sabena obtained bankruptcy protection for one month from a Brussels court this morning.

In doing so, it has gained time to restructure itself in a bid to stay in the air.

Sabena won the favour of a commercial court to go into concordat- the Belgian equivalent of bankruptcy protection - until November.

It filed for protection from its creditors on Wednesday after co-parent Swissair, itself in dire straits, reneged on a commitment to inject badly needed cash into the airline.

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Sabena received euro 125 million in bridge financing for one month from the Belgian government to create a new airline and save as many of its 12,000 staff as possible.

The financing has been criticised by other airlines as state aid, a measure strictly limited by the European Commission, which has already asked the government for details on it.

The government owns 50.5 per cent of the airline; Swissair owns the other 49.5 per cent.