Air Austral failed to rectify the situation during the first financial year (April 2023-March 2024) following its rescue by the injection of 55 million euros by private and public shareholders.
All the lights are red again and the company's cash flow was bloodless, early March, when the shareholders “put in” an additional 10 million euros to deal with emergencies. A savings plan of 24 million euros is being implemented. Negotiations have notably begun internally with the aim of reducing the payroll by around 10%. (around 8 million euros). When this figure was released, Air Austral management immediately assured that low salaries will not be affected, that top management and management will be targeted as a priority and that savings will be sought in the various benefits obtained by staff over time, rather than the amount of wages. The interruption of certain loss-making lines should help reduce the deficit, just like the financial compensation expected from the engine manufacturer Pratt & Whitney for the failures of the engines equipping the Airbus A220. At the same time, the company hopes to improve its revenues. For Joseph Bréma, chairman of the board, a return to balance is possible at the end of the 2024-2025 financial year. The Reunion company, under the watchful eye of the European Commission, can hardly afford to stay in the red after obtaining 185 million euros in debt forgiveness.
