A significant airline facing financial difficulties has declared bankruptcy, resulting in the suspension of its flights, but there is hope for its revival.
Air Calédonie, the local airline serving New Caledonia, a French territory in the South Pacific, filed for bankruptcy after encountering resistance from customers in the territory’s remote islands. The protesters disrupted key airfields in response to the company’s decision to relocate its operations from Nouméa Magenta airport to the international La Tontouta base, located over 50km away from Nouméa city.
This blockade has worsened Air Calédonie’s financial situation, leading to an estimated daily loss of around £73,000, making it difficult for the company to meet its immediate financial obligations, including staff salaries. As a result, half of the airline’s employees have been placed on temporary contracts with reduced pay.
In response to the crisis, New Caledonia’s President, Alcide Ponga, expressed concerns about the situation, stating that it appears someone is seeking the demise of Air Calédonie. Despite these challenges, the airline remains committed to salvaging the vital company for New Caledonia and developing a sustainable recovery plan.
Recently, a Commerce Tribunal in New Caledonia initiated a court-supervised recovery process for Air Calédonie. Although discussions with the blockade organizers and French State representatives did not yield progress, the tribunal has taken control of the airline’s affairs. The tribunal emphasized that the process could lead to a restructuring plan to save Air Calédonie.
Public Prosecutor Yves Dupas highlighted that this opportunity may be the airline’s last chance to survive. The proposed plan involves suspending debts incurred before April 14 to safeguard the company’s cash flow for a six-month period, with the possibility of extension. The ultimate goal is to restore the airline to a sustainable operating level in the future.
