Belgium-based Cargo B Airlines is the latest victim of the global economic slump, announcing the immediate cessation of operations. A short statement issued by management said yields were lower than those needed to make a viable operation in the current market and added the situation looked no better in the near future.

“The board of Cargo B Airlines, has had no choice but to take the difficult decision to stop its operation with immediate effect.

Thanks to the hard work of all our staff and the support from our customers and other partners involved, Cargo B was able to stay on target as far as the load factors were concerned, but as a result of the market situation, the yields were lower than required to make the operation viable.”

“The present economic climate, with no improvement foreseen in the near future, and with continued low rates in most markets, has forced us to come to this conclusion,” the statement said.

Cargo B was re-capitalised last year, with two European private equity companies and NYK investing a sum believed to be around €20 million. The company had been attempting to re-capitalise by negotiating with its shareholders, but this was unsuccessful, with a Belgian newspaper, De Tijd, stating that the company’s bank also declined to further extend credit facilities beyond the €5 million it had already lent.

Cargo B Airlines started operations on 14 October 2007, operating freight services to Africa and South America and some charter flights. Earlier this year the carrier took delivery of two B747-400 freighters.

All-cargo flights at Brussels were down 50 per cent in May from the same month a year ago, and overall freighter operators at Brussels fell by a third in 2008 from 2007.