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Cargo B Airlines Nears Bankruptcy, Decission Today  
User currently offlineBralo20 From Belgium, joined May 2008, 623 posts, RR: 0
Posted (5 years 3 weeks 4 days 10 hours ago) and read 6116 times:

The Belgian carrier "Cargo B Airlines" is near bankruptcy, later today a crucial boardmeeting will be held to define the future or the faillure of the company.

Cargo B was funded in 2007 and operates 2 brand new Boeing 747-400F freighters and 1 backup Boeing B747-200F. The new planes are owned by Cargo B shareholder Nippon Cargo Airlines and were delivered in December 2008 and May 2009. All flights are cancelled until further notice.

A small newsmessage from Belgian's leading financial paper "De Tijd":

(translated from Dutch)

Mayday for Cargo B Airlines:

Belgian airfreight carrier Cargo B Airlines is strugling to stay alive but the chance is great that all activities will be suspended unless a new investor will be found. This noon, at 13h00, there will be a board meeting to discuss the future (or faillure) of Cargo B. The capital of 27 million EUR is completely used.

All personell, based in Africa and South America were recalled to Belgium for a meeting with the pilots yesterday. A crucial boardmeeting, which would be held this morning is suspended to this noon.

Is Cargo B forced to stop activities asked the newspaper to the president Rob Kuijpers, the man who also founded the airline. I just don't know was the reaction of the president... Cargo B is flying with 2 brand new Boeing 747-400F freighters and is employing more then 50 people, most of then pilots.

Both airplanes are in Amsterdam for maintenance says Dirk Vrebos, Director Operations. The scheduled flights for today are cancelled but yesterday Vrebos told us that this weekend flights would continue. Invoices for flighthandler Aviapartner are paid untill next monday. However, the last invoice for fuel was paid by the NYK group, one of Cargo B shareholders.

Cargo B started operations in the end of 2007 with a very decent businessplan but the carier had to deal with some problems like the delayed deliveries of the new airplanes, the delay of the AOC and the sudden impact of the crisis in the sector. Cargo B was funded through PMV (a group of 50 investors from Petercam Services), QAT II Investments and QAT Arkiv with a fund of 20 million EUR. Last year a new shareholder, the NYK holding, which also operates in the port of Zeebrugge and also owner of Nippon Cargo Airlines (NCA), funded another 7 million EUR into Cargo B Airlines.


Source: De Tijd (http://www.tijd.be/nieuws/ondernemingen_diensten/Mayday_voor_Cargo_B_Airlines.8203527-431.art)

22 replies: All unread, jump to last
 
User currently offlineDALCA From Netherlands, joined Aug 2006, 518 posts, RR: 0
Reply 1, posted (5 years 3 weeks 4 days 9 hours ago) and read 6085 times:

Wow, this is a big suprise. They are a big player in the South America and Africa market. I thought they were doing pretty well with the arrival of the 2nd B744F.

If it were to go through, bas news for all the people at Cargo B but good news for the other cargo carriers as there will be a bit more load for them.



Zanair flight, please hold on finals as we have to clear rhino's off the runway. Next flight: AMS-FRA-AMS
User currently offlineNA From Germany, joined Dec 1999, 10645 posts, RR: 9
Reply 2, posted (5 years 3 weeks 4 days 8 hours ago) and read 5939 times:

Lets hope they can make it and stay operational. A shame if they go down just months after receiving new 744Fs.

User currently offlineFCKC From France, joined Nov 2004, 2348 posts, RR: 4
Reply 3, posted (5 years 3 weeks 4 days 7 hours ago) and read 5897 times:

Why do they not returned 1 744F to NCA , and stay alive with only 1 plane , till the economic conditions improve ?

User currently offlineBralo20 From Belgium, joined May 2008, 623 posts, RR: 0
Reply 4, posted (5 years 3 weeks 4 days 7 hours ago) and read 5857 times:

Cargo B is stopping their activities...


Belgian carrier Cargo B Airlines will stop their activities. The funds of 24 million EUR has been used and the founders of the airline haven't found any fresh cash to remain flying.

"We have decided to stop our activities" told president Rob Kuijers after the board meeting helt this noon. The reason is "Because there is no money left to remain flying". The flight of tommorow, thursday, has been cancelled including all other flights. KBC, the only bank of the company would not loan additional funds. Cargo B had a creditline of 5 million EUR with this bank.

Cargo B started operations in the end of 2007 with a very decent businessplan but the carier had to deal with some problems like the delayed deliveries of the new airplanes, the delay of the AOC and the sudden impact of the crisis in the sector. In the first fase 20 million EUR was raised through investors PMV (a group of 50 investors of Petercam Services), QAT II Investments & QAT Arkiv.

Last year additional funds where brought in for the amount of 4 million EUR (PMV & Petercam), also Nippon Cargo Airlines (NCA), daughter of the Japanese transportgroup NYK funded 3 million EUR.

It is unclear how things will continue. Cargo B Airlines has about 40 pilots and 20 administrative employees in service. No decission has been made to file for bankruptcy told Kuijpers.


Source: De Tijd (Belgian Financial Newspaper)


User currently offlineBralo20 From Belgium, joined May 2008, 623 posts, RR: 0
Reply 5, posted (5 years 3 weeks 4 days 7 hours ago) and read 5836 times:

Bad news for Belgian aviation altough Cargo B Airlines isn't bankrupt... From what I'm reading the company will be remained active maybe to start again after the crisis has past...

To bad for the employees of the company  Sad


For the spotters it will be 2 B744's less to photograph in BRU or LGG.


User currently offlineAirbuspilot From Belgium, joined Apr 2000, 416 posts, RR: 2
Reply 6, posted (5 years 3 weeks 4 days 7 hours ago) and read 5836 times:

This is very bad news, especially for the employees. Most of them are ex-sabena so they suffered at least one more bankrupcy so far. I wish them all the best!

Strange news I found is that they suspend all the flights, but they have not decided to close the books defentitely so there still might be some hope.

They deserve to survive, thats sure. Their business plan is very very good. They just started in the wrong period of time...


User currently offlineBralo20 From Belgium, joined May 2008, 623 posts, RR: 0
Reply 7, posted (5 years 3 weeks 4 days 7 hours ago) and read 5769 times:



Quoting Airbuspilot (Reply 6):
This is very bad news, especially for the employees. Most of them are ex-sabena so they suffered at least one more bankrupcy so far. I wish them all the best!

Strange news I found is that they suspend all the flights, but they have not decided to close the books defentitely so there still might be some hope.

They deserve to survive, thats sure. Their business plan is very very good. They just started in the wrong period of time...

Indeed, very bad news...  Sad

But yes, as it seems they will remain "active" maybe in the hope to start again after the economics are back up again... Since they have all the necessary documents it will also be easier to resume activities.

I really hope to see them start again, someday, sometime...


User currently offlineBralo20 From Belgium, joined May 2008, 623 posts, RR: 0
Reply 8, posted (5 years 3 weeks 4 days 7 hours ago) and read 5749 times:

@ the moderators

Can the title be changed to:

"Cargo B is stopping all activities" since they are not bankrupt?

Thanks  Wink


User currently offlineZeke From Hong Kong, joined Dec 2006, 8863 posts, RR: 75
Reply 9, posted (5 years 3 weeks 4 days 7 hours ago) and read 5711 times:

Did the tailscrape they had have any impact on this decision ?


We are addicted to our thoughts. We cannot change anything if we cannot change our thinking – Santosh Kalwar
User currently offlineNCB From , joined Dec 1969, posts, RR:
Reply 10, posted (5 years 3 weeks 4 days 7 hours ago) and read 5711 times:

NCA does not want to invest further because they can not handle their own losses, let alone CargoB's.

It looks like Cargo B heads must try to find liquidity somewhere else but in these market conditions, they can forget about it for now.

Aviation is hard, even on the most experienced and knowledgeable aviation professionals.
I hope that Cargo B directors do not get discouraged by this and continue to build recovery strategies. It's sad for the staff who face lay offs.


User currently offlineBlueFlyer From United States of America, joined Jan 2006, 3920 posts, RR: 2
Reply 11, posted (5 years 3 weeks 4 days 6 hours ago) and read 5593 times:
Support Airliners.net - become a First Class Member!

Part of Cargo B's strategy was to take over MK Airlines's customers flying out of OST, but MK Airlines, contrary to expectations, came out of administration rather than be liquidated...


I've got $h*t to do
User currently offlineDALCA From Netherlands, joined Aug 2006, 518 posts, RR: 0
Reply 12, posted (5 years 3 weeks 4 days 6 hours ago) and read 5577 times:

The best of luck to all of them, a bit better news for me as an employee of LH Cargo. It's the second cargo operator to stop operations in a short time, Jet8 Cargo also quit services into AMS about a month ago.
It is survival of the fittiest right now. Hopefully things will go better soon as capacity reductions by numerous airlins should have the effect that prices go up a little. Downside is now that the fuel prices are rising again.



Zanair flight, please hold on finals as we have to clear rhino's off the runway. Next flight: AMS-FRA-AMS
User currently offlineAirbuspilot From Belgium, joined Apr 2000, 416 posts, RR: 2
Reply 13, posted (5 years 3 weeks 4 days 6 hours ago) and read 5551 times:

Taking over MKs customers might have been part of the strategy, but I do not think it was an essential part of the businessplan in order to survive.

The tailstrike in EBBR most certainly had something to do with the decision to stop flying for now. If you are operating on such a strict budget, every penny counts. After that tailstrile all of a sudden 50% of the fleet was grounded so customers had to be deferred, ad hoc chartes utilised and fines most surely had to be paid. So yes, it did some damage and it played a role in todays's outcome.

But I still believe they did not calculate for a worldwide crisis to happen, and we all know it did! With or without tailstrike, this decision would have had to be taken sooner or later anyway.

Summertime traditionally is a slow time for cargo operators. So maybe, just maybe, without the tailstrike incident they could have survived the summer untill traffic picked up again afterwards. But that is just speculation...

I know two out of three VP'spersonally, and these people are competent. Lets hope they can weather this storm...


User currently offlineLAXintl From United States of America, joined May 2000, 24821 posts, RR: 46
Reply 14, posted (5 years 3 weeks 4 days 6 hours ago) and read 5542 times:

Is any one truly surprised?

In my opinion they lived far longer then they naturally should have. If not for the the fresh outside recapitalization they would have closed down while still operating the 742s last year.



From the desert to the sea, to all of Southern California
User currently offlineAirbuspilot From Belgium, joined Apr 2000, 416 posts, RR: 2
Reply 15, posted (5 years 3 weeks 4 days 6 hours ago) and read 5512 times:

Ok, they where critically under capitalised for an airline, but the management team was excellent, their strategical position in EBBR was perfect and they had a good business plan.

So I do not agree with that.


User currently offlineDALCA From Netherlands, joined Aug 2006, 518 posts, RR: 0
Reply 16, posted (5 years 3 weeks 4 days 5 hours ago) and read 5477 times:

It does also mean 2 new B744F's without work for now, let's hope they don't join the growing collection of them in the desert somewhere.


Zanair flight, please hold on finals as we have to clear rhino's off the runway. Next flight: AMS-FRA-AMS
User currently offlineLAXintl From United States of America, joined May 2000, 24821 posts, RR: 46
Reply 17, posted (5 years 3 weeks 4 days 4 hours ago) and read 5361 times:



Quoting Airbuspilot (Reply 16):
their strategical position in EBBR was perfect

Ya it was so good, that they decided to move to EBLG  Yeah sure



From the desert to the sea, to all of Southern California
User currently offlineAirbuspilot From Belgium, joined Apr 2000, 416 posts, RR: 2
Reply 18, posted (5 years 3 weeks 4 days 4 hours ago) and read 5295 times:

They did not decide to do that, they where forced.to.. And thats a HUGE difference.

All because of the nightflights politics in Belgium. They often said it themselve that they needed the strategical position of BruCargo for their plans to work. And as I believe they continued using BruCargo for their daytime departures.


User currently offlineBlueFlyer From United States of America, joined Jan 2006, 3920 posts, RR: 2
Reply 19, posted (5 years 3 weeks 4 days 3 hours ago) and read 5268 times:
Support Airliners.net - become a First Class Member!



Quoting DALCA (Reply 17):
It does also mean 2 new B744F's without work for now, let's hope they don't join the growing collection of them in the desert somewhere.

One of them is still brand new (don't remember where the other one came from). If nothing else, it will be picked up by an existing operator to replace an older leased B744F to lower maintenance costs.

Quoting LAXintl (Reply 18):
Ya it was so good, that they decided to move to EBLG

Belgium is small. For a cargo operator, the difference between flying from either one of the two airports is almost insignificant location-wise (think LAX and ONT distance-wise). LGG is cheaper to operate from, does not have night-time caps and has the same road connections to neighboring countries that BRU does. It is insignificantly closer to Germany and insignificantly further from France.

What LGG does not have is the same infrastructure as BRU (warehouse, etc...). LGG can handle Cargo B, but it wouldn't be able to accommodate Asiana or Singapore Cargo moving over overnight, for instance.

Quoting Airbuspilot (Reply 14):
Taking over MKs customers might have been part of the strategy, but I do not think it was an essential part of the businessplan in order to survive.

I don't think so either, but it is just one more thing that didn't go well for Cargo B.



I've got $h*t to do
User currently offlineBralo20 From Belgium, joined May 2008, 623 posts, RR: 0
Reply 20, posted (5 years 3 weeks 4 days ago) and read 5104 times:



Quoting BlueFlyer (Reply 20):
One of them is still brand new (don't remember where the other one came from). If nothing else, it will be picked up by an existing operator to replace an older leased B744F to lower maintenance costs.

Both B744F's were delivered brand new ex-Boeing. The first B744F, OO-CBC was delivered in December 2008 while the second one, OO-CBD, was just delivered a bit more then a month ago in May 2009. So in fact both planes are near factory new.

It seems that both planes will go back to their owner NCA who may store them somewhere.


User currently offlineLAXintl From United States of America, joined May 2000, 24821 posts, RR: 46
Reply 21, posted (5 years 2 weeks 6 days 18 hours ago) and read 4565 times:

This went out to partners from Cargo B at the end of last week.

Quote:
Dear Business Partner,

We deeply regret that we have to advise you that the Board of Cargo B Airlines had to take the difficult decision today to stop its operation with immediate effect.

Thanks to support from our clients and the hard team work of your and our staff and all partners we have been able to stay on target as far as the load factors but the yields as a result of the market situation were lower than required and this had a big impact on our revenue and cash position.

The present economical climate with no improvements foreseen in the near future and the strong competition resulting in sometimes very low rates mean we cannot expect major improvements on the short term.

Cargo B has been doing its utmost in the past few months and as recent as last week to find the interest of new investors to increase the required capital but we have not been able to find sufficient funds and parties to warrant a continuation of the operation.

We are very grateful for all your support and the confidence given to us from the start of the flights in October 2007 and our sincere apologies for any inconveniences caused as a result of our decision.

In the next days we will come with the procedures to follow in relation to the outstanding invoices and how to proceed.

Kind regards
The Cargo B Management

Both -400s are now sitting in AMS.

Quoting BlueFlyer (Reply 19):
Belgium is small. For a cargo operator, the difference between flying from either one of the two airports is almost insignificant location-wise (think LAX and ONT distance-wise). LGG is cheaper to operate from, does not have night-time caps and has the same road connections to neighboring countries that BRU does. It is insignificantly closer to Germany and insignificantly further from France.

What LGG does not have is the same infrastructure as BRU (warehouse, etc...). LGG can handle Cargo B, but it wouldn't be able to accommodate Asiana or Singapore Cargo moving over overnight, for instance.

Its been reported the move to LGG and while still maintaining its base and office at BRU cost the airline €12mil. Not something an already under capitalized company can support.



From the desert to the sea, to all of Southern California
User currently offlineBralo20 From Belgium, joined May 2008, 623 posts, RR: 0
Reply 22, posted (5 years 2 weeks 5 days 14 hours ago) and read 4297 times:

Yesterday it was announce that Cargo B Airlines will be voluntary terminated instead of declaring bankruptcy. The company has more open invoices from customers than it has open invoices with suppliers. Cargo B Airlines will be able to pay everyone when it has collected all open invoices.

So... This is the end of Cargo B Airlines (BB)... One fine Belgian carrier gone  Sad


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