An Antwerp commercial court last week approved VLM's application for bankruptcy protection thus giving the ailing carrier breathing space to restructure its operations.

"We welcome this decision, because it is in the best interests of not only our company, but also our valued customers, employees, business partners and other stakeholders," VLM (1992) (Antwerp) CEO Hamish Davidson told the Schwäbische Zeitung.

Over the six-month period, extendable to eighteen months if need be, Davidson said VLM would focus on maintaining solvency as well as reviewing and adapting its fleet and network operations.

The need for creditor protection arose earlier this month after KBC Bank froze VLM's accounts. The airline's debts reportedly include EUR3 million (USD3.4 million) owed to the bank as well as an additional EUR3 million owed to various suppliers.