Virgin lines up bid for Sabena

Virgin is thought most interested in Sabena's short and medium-haul routes

Brussels-based discount airline Virgin Express has said it is interested in buying some of Sabena's assets, a week after the troubled Belgian airline filed for bankruptcy protection.

"If negotiations were to prove successful, it is hoped that a large number of jobs would be saved amongst Sabena staff and within dependent companies," Virgin said in a statement.

Virgin Express refused to say what parts of Sabena it was interested in taking over, but it is thought to be concentrating attention on the short and medium-haul routes.

"Discussions are at an early stage with both the management of Sabena and the administrators appointed by the Belgian court," it said.

Virgin said successful talks with Sabena could save up to 3,000 jobs.

Last Friday, Sabena was given bankruptcy protection for two months after crisis-hit part-owner Swissair reneged on a pledge to give it more money.

The government, the majority share holder with 50.5%, has given Sabena a 125m euro ($114m) bridging loan and told the airline to restructure itself as a slimmed-down company centred on European routes.

More aid needed

The government on Thursday promised financial aid to staff laid off as part of Sabena's restructuring programme.

The unions insisted the government increase its offer beyond the 2bn francs ($45m) promised under an earlier plan, as sackings at Sabena are not expected go beyond the initial target of 1,500.

"There has to be a social security net for everyone and I fear 2bn francs is not enough," said Karel Gacoms, a union spokesman.

The unions have threatened to start a 24-hour strike on Friday.

On Wednesday, more than 1,000 of the 12,000 Sabena workers demonstrated in Brussels to demand more aid from the government.

"The government confirms its commitment to accompany the restructuring with an extra social plan," Prime Minister Guy Verhofstadt's office said in a statement after a cabinet meeting on Thursday.

The government expects an outline for the new company to be presented early next week.