2024-03-19 16:32:39
A meeting took place at the Ministry of Overseas Territories on Tuesday March 19 to discuss the financial situation of the Reunion company, in great difficulty since the Covid-19 crisis. The government is asking the company to present a solid turnaround plan by the end of April.
The State is putting pressure on Air Austral. The Reunion airline, which serves several islands in the Indian Ocean and connects France to Reunion and Mayotte, must completely review its activity to become viable again, the government demanded on Tuesday March 19, after a meeting between the Minister responsible for Overseas Territories, the Minister of Transport and the Minister of Industry.
Air Austral, which employs nearly 800 people, has been drowning in debt since the Covid-19 crisis, which brought air traffic to a halt. At the time, the company accumulated 300 million euros of debt, much of which was subsequently canceled by the state. But she hasn’t been able to recover since.
On March 7, the airline’s supervisory board validated a restructuring plan presented by management. This provided for a significant reduction in the payroll (in particular via a reduction in salaries) and a reprogramming of flight plans in order to favor the most profitable lines.
Private and public shareholders (including the regional authority) have decided to invest an additional 10 million euros to get the company out of the water. They hope to exceed 1.2 million passengers in the next fiscal year which begins in April.
“Efforts will be made”, promised the president of the Réunion region, Huguette Bello, from Paris, where she participated in the meeting with Marie Guévenoux (Overseas), Patrice Vergriete (Transport) and Roland Lescure (Industry). With the Department, the regional authority holds 44% of the capital of the company headed by Joseph Bréma.
However, the government judges that the plan presented by management is not sufficient to turn around the company. “The State is in a support posture which will be demanding vis-à-vis Air Austral”, we specify at the top of the State, after the interministerial meeting. It requires effort from all stakeholders.
We must not forget that there were mistakes made by our predecessors. (…) We hope to iron out these difficulties, because we also want (…) to reassure the 850 people who work.
Huguette Bello, president of the Réunion region
Air Austral, a “important company” according to the executive, will therefore have to present a solid three-year turnaround plan by the end of April, in order to provide visibility on the viability of the company. Which involves reviewing your activity from A to Z.
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