Air Caraibes Atlantique (CAJ, Paris Orly) parent, Groupe Dubreuil, has abandoned plans to acquire loss-making Corsair International (SS, Paris Orly) from German leisure firm, TUI AG, after they encountered strong opposition from the airline's unions.
"Despite the efforts of recent weeks, the parties have concluded that they will not be able to finalize the project pertaining to the transfer of Corsair," Corsair said in a statement. "Consequently, the Dubreuil group and the TUI group have ended their discussions on the proposed transaction."
Following the deal's presentation to Corsair's staff last month, the airline's unions - CFE-CGC, CFDT, CGT, SUD-Aérien, and UNAC - moved to demand greater guarantees concerning workforce contracts.
Groupe Dubreuil's plans to create a new company responsible for the operation of six new A350-900s, due next year, led to union concerns that both Air Caraïbes and Corsair employees would be forced to reapply for their jobs albeit without their seniority and with clauses linking remuneration to productivity.
The unions as such labelled the move as Groupe Dubrueil's 3-step plan towards the "Absorption – Destruction – Disappearance” of Corsair and called for a series of strikes, the first of which went ahead last weekend. The industrial action is reported to have cost the carrier 'several millions of euros' in additional aircraft leases and lost revenue.
Unions also refused a last-ditch attempt by Air Caraibes (TX, Pointe à Pitre) CEO Marc Rochet to push through the deal adding that with its collapse, they are now in a position to cooperate with TUI AG in returning Corsair to profitability.
