SIMON WARBURTON / LOURDES
Newly formed French carrier Air Lib is searching urgently for new backers to help finance its revival attempt after troubled former shareholder Swissair reneged on a promise to pay a lump sum to exit the company.
Speaking at the inauguration of Air Lib's new service from Paris Orly to Lourdes, chief executive François Bachelet says the airline accepts Swissair is unlikely to pay the Fr400m ($54.9m) it owes.
"We want to find more partners by year-end," adds Bachelet, "although the events of 11 September have made institutions such as banks and pension funds more careful." Air Lib is seeking investment from the governments of the French overseas territories of Martinique, Guadeloupe and La Reunion, where it has a strong presence, although Bachelet concedes the process is "complicated".
Air Lib, the heavily scaled-back amalgamation of AOM and Air Liberte, predicts losses of Fr450 million this year and Fr400 million in 2002, but hopes to break even in 2003.
The carrier hopes Swissair will provide two more Airbus A340-300s to replace two already leased from Swissair's subsidiary Flightlease, but Swissair's refusal to confirm the deal has hampered Air Lib's planning. "We are trying to understand what is happening with the Swissair aircraft," says Air Lib's senior vice-president for commercial affairs Guy Lebrault. AirLib is also looking to replace its 10 McDonnell Douglas DC-10s with "either A340s or A330s" by 2005.
Air Lib also pronounced dead Swissair's European Qualiflyer Alliance, which had seen its influence eroded following Swissair's financial problems. "We are debating the future of an alliance but a small airline like us has a lot more to lose than to gain from a global alliance," says Bachelet.
There are bright spots for Air Lib. It may soon open a Paris-Algiers service, hitherto not operated by a French carrier following security issues, and may also resurrect a codesharing service to Havana. "The Cuban market is growing by 15% a year," adds Bachelet, "and a codeshare deal with Cubana could be good."
Air Lib has also received around Fr10 million from the French Government as compensation for lost business on its Paris-Los Angeles service after 11 September.
Source: Flight International
