Pacific carrier Air Caledonie is embarking on urgent restructuring measures after being engulfed by crisis, in the wake of political unrest in the French overseas territory.
Air Caledonie is cutting its workforce by one-third and implementing a number of productivity improvements after finding itself in an “extremely critical” situation, it states.
Chief executive Daniel Houmbouy and chair Mathias Waneaux detailed the need for transformation during a 17 July briefing.
Air Caledonie says its financial position had already been weakened by such events as the Covid-19 pandemic.
But the airline’s prospects have deteriorated after violent protests erupted in May over voting reforms.
It says “emergency measures are necessary” to enable the carrier’s survival, pointing out that international and local tourism is “at a standstill” and the outlook is “uncertain”.
“With the economic sector devastated and administrations no longer having the means to finance them, business travel is greatly reduced,” it adds.
Air Caledonie says its traffic has “collapsed” and it is transporting 70% fewer passengers than before the events in May.
It says steps are being taken to reduce recurring expenses and obtain financial support from the government and shareholders, while revising its fare structure to broaden appeal.
The carrier is also holding advanced discussions to lease one of its four ATR 72-600s to another airline. It took delivery of the four turboprops in December 2016 and December 2017.
Air Caledonie is studying options to co-operate with fellow New Caledonian operator Aircalin, it adds: “With a common shareholder and similar issues, pooling must be deepened to rationalise the sector.”
