Simon Warburton / Paris
Crisis-ridden French carrier AOM-Air Liberte's Fr1.3 billion ($175 million) bailout by outgoing parent Swissair is to be delivered over a period of months rather than an immediate lump sum cash injection.
The French airline escaped from the threat of liquidation last week when a Paris commercial court selected the Holco group's rescue package led by Air France pilot Jean-Charles Corbet and backed by Canadian bank CIBC. Despite Swissair Group's funding commitment, the venture still needs an additional Fr500-800 million to implement fully its restructuring plan. A first payment of Fr50 million has already been made by Swissair and this is to be followed by a series of deposits until the end of the year as the price of extradicting itself from the 49% holding in the French carrier. Marine Wendel Taitbout Antibes, the 51% shareholder, has effectively relinquished its holding without any payments.
It is believed that Corbet, acting as interim president, along with new chief executive Francois Bachelet, the former head of Air France Cargo, are continuing to search for the extra cash to ensure the carrier's survival.
The restructured airline will operate 11 McDonnell Douglas DC-10s and 18 Boeing MD-83s.Two Airbus A340-300s and two A340-200s on preferential lease rates from Swissair will remain, while a further two A340 types will arrive during 2003. Holco beat bids from French financial house Fidei and former AOM boss Marc Rochet, to convince the court of its financial stability. Pilots at the airline had threatened strike action had the court opted in favour of the ex-AOM chief executive.
AOM-Air Liberte pilot unions - largely dominated by the Syndicat National des Pilotes de Ligne - backed the Holco rescue package that envisages preserving 2,706 of the 4,559 jobs and proposes that flightcrew exchange shares for a 10% salary cut.
Network reductions following Holco's take-over are still unclear.
Source: Flight International
