The European Commission has announced the opening of “an in-depth investigation” into the modified restructuring plan of Corsair International (SS, Paris Orly), to determine whether it complies with EU state aid rules and whether it can really restore the airline’s “long-term viability without additional or continued state aid and within a reasonable time period.”
In December 2023, Corsair said it had secured new funding to carry out its recapitalisation, but ten days ago it was reported that part of this could be under question.
However, it is a EUR136.9 million euro (USD147.2 million) Covid-era restructuring plan, which Brussels approved in December 2020, that is the focus of the new investigation, as two years later France sought modifications to this plan including “adjustments to existing financing instruments as well as additional tax incentives.”
The probe will also examine whether “Corsair’s own or the market’s contributions to the restructuring costs are sufficient, real, actual, and free of any aid [and if] the restructuring aid is proportionate” and the French state receives “appropriate remuneration for its intervention,” the European Commission explained in a statement dated February 5.
“At this stage, based on its preliminary assessment, the commission must carry out a more in-depth assessment to determine whether the revised restructuring plan is compatible with EU state aid rules,” the European executive body summarised. However, the opening of an investigation does not prejudge its outcome and gives France and interested third parties the opportunity to present their comments, it added.
