Corsair announced last week that a consortium of investors and the state of France has signed an agreement to ensure the long-term sustainability of the airline. The transaction should be finalized before 2021 hits after approval by the Commercial Court of Créteil and will see the airline raise €300 million ($364 million). Notably, the move will see the TUI Group and Intro Aviation sell their entire stake in the carrier’s capital.
A crucial move
According to a press release seen by Simple Flying, the agreement allows Corsair to take on the unprecedented challenges brought on by the global health crisis. The airline highlights France’s support of the aviation industry as a strong factor in its determination to overcome the difficulties.
“The consortium of investors, which becomes 100% shareholder, will play a decisive role in the success of Corsair On the initiative of two entrepreneurs, Eric Kourry and Patrick Vial-Collet, a consortium was quickly formed, bringing together entrepreneurs, particularly from the tourism and hotel sectors, based in the West Indies, Reunion Island and Guyana, as well as local authorities,” the press release says, translated from French.
“Fully aware of the essential role of air transport for the economic and tourist development of the overseas departments and regions (DROM), the consortium acquires all of Corsair’s capital in order to support it in a restructuring project and development, and thus allow the maintenance of a sufficient number of actors on the services of the DROM.”
Looking to bounce back
The statement emphasizes that the consortium will quickly help strengthen Corsair’s position. Ultimately, the carrier now has the tools to weather the crisis and pursue the implementation of its strategic plan. The financial support gives it a solid basis to ensure its sustainability.
Altogether, the €300 million will reinforce the airline’s equity and cash flow. So, it can recover from the pandemic with confidence while building its level of competitiveness as it seeks to seize all opportunities.
The operator’s movements to reducing fixed costs have already made it possible to obtain considerable results. It has signed new open-ended agreements. This, along with cost reductions, will simplify operations and improve performance.
Above all, Corsair’s move towards a sustainable business program will help it achieve success with its fleet renewal and modernization project that is underway. The airline has firm orders for five Airbus A330-900neos, which will start to arrive from next February.
The fifth A330-200neo will replace the last A330-200 still present in the carrier’s holdings. This move will bring the fleet age to less than half a decade old. Efficiency and environmental goals will also be supported here. The carrier highlights the NEO’s ability to reduce carbon emissions and noise pollution over previous generation aircraft.
To develop its position as an overseas outfit, Corsair will focus on operations to the French overseas territories. There will be the strengthening of services to current destinations such as Martinique, Guadeloupe, Réunion, Mauritius, Abidjan, and Montreal. However, there will also be expansions to new destinations such as Mayotte from next month.
What are your thoughts about these developments at Corsair? Do you think that this is a good move for the airline? Let us know what you think of the situation in the comment section.