Air Austral taken over by local investors

Airlines Air Austral Boeing 777-300ER takeoff
KITTIKUN YOKSAP / Shutterstock.com

A consortium of 27 private investors became the main shareholder of the Reunionese airline Air Austral.

The decision was approved by the court of Saint-Denis, la Réunion, on January 25, 2023. The new entity will have a 55.18% stake in Air Austral. The rest will remain in the hands of Sematra, a semi-public company owned by La Réunion which, until now, held 99% of the capital of Air Austral.

The restructuring plan will be accompanied by a contribution of €30 million from these investors and €25 million from Sematra. €17.5 million were provided by the French state to compensate Air Austral for the damage it suffered during the coronavirus pandemic. €185 million in debt were also paid off.

“Air Austral is saved. It is a great satisfaction and a collective success after a year of work,” Normane Omarjee, third vice-president of the regional council of La Réunion, told local media.

Founded in October 1990, the French airline operates flights between La Réunion and other neighboring islands in the Indian Ocean, and mainland France. It also operates several international flights to Asia. It operates a mixed Airbus-Boeing fleet of eight aircraft.