Swissair row deepens over Sabena

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The Swissair Group has reacted strongly to legal action launched against it by the Belgian government in the battle to save troubled airline Sabena.

The government is seeking around $450m from the Swiss airline, which is itself is restructuring and cutting costs after a difficult financial year. The government claims Swissair has reneged on a promise to accept financial responsibility for Sabena.

Earlier the government rejected an offer by Swissair to inject fresh capital into Sabena, replacing an agreement under which the Swiss airline would raise its stake in Sabena to 85%. Now the government is seeking damages.