Reasons For Bankruptcy
The reasons for SABENA's bankruptcy are numerous. One of the direct causes was Swissair not living up to their contractual obligations and failing to inject necessary funds into the company. This was because at the time Swissair was having its own financial problems. During the so-called "Hotel agreement", signed on July 17, 2001, Belgian prime minister Guy Verhofstadt met with Swissair boss Mario Corti, who agreed to inject €258 million into SABENA. Mr Corti had made a terrible mistake as the sum was never paid, due to Swissair's own financial problems. The purchase of 34 new Airbus planes, imposed by the Swiss, was a burden SABENA could not cope with.
After the bankruptcy, a parliamentary commission in Belgium was established to investigate the demise of the airline. The Belgian politicians got a part of the blame; Rik Daems, who, at the time, was Minister of Public Enterprises and Participations, Telecommunication and Middle Classes, received most criticism due to his lack of effort. Swissair itself went bankrupt in October of that year.
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