France’s Cash-Strapped Aigle Azur Airline Closes
France’s civil aviation authority stated that France’s second-largest airline has gone into receivership after filing for bankruptcy on Monday and losing millions of euros.
The DGCA authority said that the Aigle Azur airline was placed in receivership after facing several months of cash flow problems.
The government was mobilized to seek the best solution to preserve jobs and ensure the continuation of the economic activities.
Last week a shareholder coup ousted the chief executive Farntz Yvelin accusing him of making ‘strategic mistakes over the past two years’.
The company posted revenues of €300 million last year after transporting some 1.9 million passengers but it wasn’t enough to stem heavy losses. The airlines announced the plans to sell its Portugal routes to low-cost rival Vueling.
The employees said that the Aigle Azur is in cession of payments after several years of drifting because of numerous improper strategic decisions, and must ask for commercial court protection.
Bankruptcy protection would allow the airline’s 1,150 employees, including some 350 based in Algeria, to continue operations. The largest stakeholder with 49 percent is the Chinese conglomerate HNA Group which own the Hainan Airlines.
David Neeleman, an American airline entrepreneur whose companies include JetBlue and TAP Air Portugal, owns 32 percent while French businessman Gerard Houa owns 19 percent.