Réunion investors to take majority stake in Air Austral

Latvia’s airBaltic aiming for €500mn+ IPO - Gauss

Réunion contributes €15mn to restructured Air Austral

S. Africa's Airlink resumes Madagascar ops after ban lifted

Airlink (South Africa) (4Z, Johannesburg O.R. Tambo) will restart scheduled services between Johannesburg O.R. Tambo and Antananarivo from January 30 following a decision by Madagascar to lift an effective three-year ban on commercial flights to/from South Africa.

Madagascar removed all Covid-19 travel restrictions on March 3, 2022, but continued to block all flights to/from South Africa, a ban extended on October 15, 2022, particularly affecting Airlink, the only scheduled operator on the route.

As confirmed by Madagascar's Council of Ministers on July 13, 2022, the reason was a dispute between Antananarivo and Pretoria over 73.5 kilograms of smuggled gold and USD20,000 seized at Johannesburg OR Tambo International Airport on December 31, 2020, from three passengers who had arrived from Madagascar on a chartered flight.

The Malagasy government demanded the return of the treasure and the extradition of its nationals, now jailed in South Africa. The route to South Africa stayed closed pending the signing of a Memorandum of Understanding (MoU) between the two nations to combat the smuggling of national resources.

EC okays €138mn in French state aid for Air Austral

The European Commission (EC) has authorised French state aid of EUR136.8 million euros (USD144.3 million) to Air Austral (UU, St. Denis de la Réunion), of which EUR119.3 million (USD125.9 million) is earmarked for restructuring the airline and EUR17.5 million (USD18.4 million) in compensation for damages suffered during the Covid-19 pandemic.

In a January 5 statement, the EC also announced it had approved the restructuring plan, which runs from January 2022 to March 2025. Air Austral will contribute towards its funding through its own or private sources of funds. The new aid followed a loan of EUR20 million (USD21.1 million) from the French state to Air Austral on January 18, 2022.

Measures aimed at limiting distortions in competition will remain in place during the above-mentioned restructuring period. These include limitations on the number of seats and routes operated by Air Austral and a ban on acquiring stakes in other undertakings and business agreements with other airlines.

Brussels believes the restructuring plan will ensure the airline's long-term viability and prevent it from being wound up, which it...