French Bee opposes the 147 million euros in aid that the State wants to grant to Corsair

French Bee opposes the 147 million euros in aid that the State wants to grant to Corsair
French Bee opposes the 147 million euros in aid that the State wants to grant to Corsair

Airline player, just like Air France, on the destination of the Antilles, the Dubreuil group (French Bee, Air Caraibes) sent to the European Commission its arguments denouncing the legitimacy of the financial support that the State wishes to grant to the restructuring plan from its competitor Corsair.

Written by TL – Tuesday May 28, 2024 at 11:49 a.m.

Is the Corsair company navigating in troubled waters, between the tap of public aid which keeps it afloat and the doubts clearly expressed in April by the European Commission on its “long-term viability”as reported by the daily Le Monde?

In the opinion delivered at the end of its investigation, Brussels argued that Corsair’s new restructuring plan presented very few reimbursement guarantees for the French State, and that a possible return of accounts above the line flotation would mainly benefit shareholders.

Challenges magazine reported on Monday May 27 the elements sent to the European Commission by the Dubreuil group (Air Caraibes, French Bee) to contest the very basis of new support from the French state for Corsair.

For its competitor, Corsair did not present in Brussels a continuation of the previous plan dating from 2020 based on support for overseas economies, but rather a new plan based this time on the opening of airlines to French-speaking Africa , via entry into the capital of Congo Brazzaville. In fact, the airline cannot claim two state aid plans in less than 10 years and the European Commission, which has also noted Corsair’s change of direction, could well raise eyebrows.

Havas Voyages in the financing round

Still according to Challenges, the aid promised by the State is substantial: “abandonment of 103 million euros of debt and 44 million of reschedulings and tax credits”. Which would bring the financial support to 200 million euros in total according to Le Monde since the Covid period.

The L’Informé site provides information on the capital increase of 30 million planned thanks to the entry of dashing shareholders into the round table such as Congo Brazzaville (40% of the shares for 15 million euros) or again the Marietton group (Havas Voyages), presented as the largest private shareholder with 4.5 million euros placed on the table. Present in Reunion Island through his acquisition of a stake in the capital of CBO Territoria, Yann Le Febvre (Exsel Authentic hotels) is one of the former shareholders who agreed to give in.

L’Informed also reports that Corsair’s turnover has soared “by 15% between October 1, 2023 and March 31, 2024, compared to the same period a year earlier”thanks in particular to the modernization of its fleet (six A330 neo and three additional expected by the end of the year) and a +21% increase in freight tonnage.

The European Commission could force Corsair to make certain concessions towards its competitors Air France and French Bee, in exchange for obtaining aid of 147 million euros from the State.

Air Austral risks still needing 30 million, shareholders have 6 months to find solutions

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