VLM files for Bankruptcy

ANTWERP: European regional carrier VLM has announced its intention to file for bankruptcy, with all flights cancelled with immediate effect.

This comes after the airline recorded 13 million Euro in losses for 2015. The Antwerp based carrier was forced to apply for bankruptcy protection with a commercial court.

A statement posted on the Belgian regional airline’s website said, "We are sorry to have to inform you that VLM Airlines NV has filed for bankruptcy on Wednesday June 22 2016.”

Over the years the airline has changed ownership a number of times. In 2008 it was sold to KLM –Air France via City jet.

The fleet was then re-branded with the City Jet colours before, in 2014, becoming a part of the INTRO group, before later in the same year being sold to the VLM management.

The news is disappointing for airline staff and passengers alike, but the airline stated that the six-month period of creditor protection allotted was insufficient to both restructure its operations and raise extra capital going forward.

It is reported that the airlines owes 3 million Euro to its creditors and a further 3 million Euro to various suppliers.