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EU Commission OKs French Restructuring Aid For Air Austral

 |  January 8, 2023

The European Commission has authorised France’s plan to pay restructuring aid of EUR 119.3 million to enable the airline Air Austral to return to viability.

In addition, a further EUR 17.5 million in aid has also been approved to compensate the company for damage suffered as a result of the coronavirus pandemic between 17 March and 30 June 2020.

Set up in October 1990 and based on Réunion, Air Austral is a French airline company that ensures territorial continuity between Réunion, and other neighbouring islands in the Indian Ocean (Mayotte in particular) and mainland France.

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With a fleet of eight aircraft, it also operates services to destinations in the countries of the Southwest of the Indian Ocean and in Asia.

In January 2022, rescue aid for the French airline was approved and provided in the form of an EUR 20 million loan from the French State to Air Austral.

At the time, France has also formally notified the Commission of restructuring aid amounting to EUR 119.3 million aimed at funding a restructuring plan for the airline. Today the Commission approved the proposed restructuring aid for Air Austral.

According to the Commission, the plan makes it possible to ensure the long-term viability of the airline and thereby prevent it from being wound up, which would cause considerable harm to Réunion as an outermost and assisted region.