Brussels Airlines

Brussels Airlines to benefit from changed EU law that levels playing field for airlines

Brussels Airlines will benefit from ongoing European Union legal changes that it argues will level the playing field for nationally based legacy carriers compared to European-wide low-cost carriers which establish outside their home bases. Under previous legislation, airline employees were subject to taxes and social security rules of their company’s home, and not their operating base. That meant, for example, that Ryanair staff in Belgium paid lower taxes and had a competitive advantage against Brussels Airlines staff even though living in the same country.

This disadvantage was pushed into the limelight recently by what Brussels Airlines deems was misinterpretation by the foreign press that the airline would move headquarters to a more favourable labour location like Luxembourg. The airline affirms it has no intention to move its staff or headquarters. Brussels Airlines will continue to call its namesake city home.

Brussels Airlines to further expand in Africa and launch New York but cut back in Europe

Brussels Airlines plans to further expand capacity on African routes in 2012 while shrinking its European operation as Boeing 737s are phased out as part of a narrowbody fleet simplification initiative. The Lufthansa Group subsidiary will also resume service to New York in 2012, a move made possible by expansion of its A330 fleet and designed primarily to better serve the fast-growing US-Africa market.

Africa has been a second home market and the main focus for Brussels Airlines since it became part of the Lufthansa Group and entered the Star Alliance in 2009. The carrier is keen to continue this focus as the European market becomes even more challenging for small flag carriers given the region’s banking crisis and increasing competition from low-cost carriers. As an emerging market with huge potential and limited competition, Africa offers carriers from mature markets opportunities for growth and the increasingly unusual combination of high yields plus high load factors.

European airlines report single-digit traffic growth in 2010; profits remain weak

European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.