Tag Archives: Corsair International

European Commission approves €106.7 million restructuring aid and €30.2 compensation for damages suffered due to coronavirus outbreak in favor of Corsair

 

The European Commission has approved, under EU State aid rules, two French measures in favor of Corsair, an airline active in passenger and cargo transport mainly to French overseas territories. The first measure consists in €106.7 million of restructuring aid for the company. The second measure, with a budget of €30.2 million, aims to compensate the company for damage suffered due to emergency measures put in place by governments in the context of the coronavirus outbreak.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Corsair was in financial difficulties, which were aggravated by the coronavirus outbreak. Today’s decisions enable France to support the airline with two independent measures. The restructuring aid will allow Corsair to partially finance the restructuring plan that should bring the company back to viability and will help avoiding disruptions for passengers in the outermost territories of the European Union. The second measure will compensate Corsair for the damage suffered because of the coronavirus outbreak that hit the aviation sector particularly hard.

The French support measures

Corsair is a private French airline company, which operates routes from Paris-Orly airport to the French Antilles, Reunion, Mauritius, Côte d’Ivoire, USA and Canada. Due to important losses in the last two years, Corsair has been facing financial difficulties already before the coronavirus outbreak. Its financial difficulties have been severely aggravated by the travel restrictions imposed by France and by several destination countries to limit the spread of the coronavirus.

In November 2020, France notified to the Commission (i) a restructuring aid measure and (ii) a measure compensating damage suffered because of the coronavirus outbreak, both in favor of the airline.

The restructuring aid measure

The restructuring aid amounts to €106.7 million and is composed of (i) €21.9 million of tax deferrals, (ii) €4.8 million of tax credit, (iii) €18 million of soft loan and (iv) €62 million of participating loan.

The Commission assessed this measure under the Commission’s 2014 Guidelines on State aid for rescue and restructuring, which enable Member States to support companies in difficulty, provided, in particular, that the public support measures are limited in time and scope and contribute to an objective of common interest.

In the present case, the Commission has taken the following elements into account:

  • The amount of the restructuring aid represents less than 50% of the restructuring costs. The rest of the restructuring costs will be covered by own contribution coming from a current shareholder (TUI), future shareholders (a consortium of investors active mainly in tourism sector) and other free resources (including the sale of three aircrafts). In the context of the restructuring, the current shareholders (Diamondale and TUI) will exit the company..
  • The restructuring aid is accompanied by a restructuring plan aimed at restoring the viability of Corsair by 2023. The plan provides for reduction of staff costs, concentration of Corsair’s activities on its core profitable routes to French overseas regions, optimization of the fleet and abandonment of loss making routes.
  • Corsair also committed to a number of competition measures mitigating the negative effects of the planned aid (taking into account the small size of the company). In particular, for the duration of the restructuring plan, Corsair committed to: (i) not acquire interest or holdings in other companies; (ii) not increase its capacity over the fleet in operation or already ordered; (iii) not open new routes, except those identified in the plan; (iv) divest slots; (v) close its route Paris-Miami; and (vi) divest its customer service activities at Orly airport.
  • Corsair did not benefit from rescue or restructuring aid in the past ten years.

The Commission found that the measure will help ensure the orderly continuation of flight services, in the interest of air passengers, and will contribute to maintain connectivity with French overseas territories, without unduly distorting competition in the Single Market.

Taking into account the elements above, the Commission therefore concluded that the planned restructuring aid is compatible with EU State aid rules.

The measure compensating damages suffered in context of coronavirus outbreak

Along with the restructuring aid, France notified to the Commission an aid measure to compensate Corsair for the damage suffered from 17 March to 30 June 2020 resulting from the containment measures and travel restrictions introduced by France and other destination countries to limit the spread of the coronavirus. The support will take the form of a €30.2 million tax credit.

In order to ensure that there will be no overcompensation, an independent external audit firm will verify that the aid does not exceed the amount of damage suffered. Any public support received by Corsair in excess of this amount will have to be returned. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors for damage directly caused by exceptional occurrences, such as the coronavirus outbreak.

The Commission considers that the coronavirus outbreak qualifies as such an exceptional occurrence, as it is an extraordinary, unforeseeable event having significant economic impact. As a result, exceptional interventions by the Member State to compensate for the damage linked to the travel restrictions in the context of the outbreak are justified.

The Commission found that the French measure will compensate damage that is directly linked to the travel restrictions in the context of coronavirus outbreak. It also found that the measure is proportionate, as the compensation does not exceed what is necessary to make good the damage.

On this basis, the Commission concluded that the French damage compensation measure is in line with EU State aid rules.

Corsair International aircraft photo gallery:

Corsair International aircraft slide show:

TUI to sell Corsair to a consortium of investors

Corsair International has made this announcement (translated from French):

An agreement was signed between Corsair, the State and a consortium of investors, presenting a collective financing solution allowing Corsair to overcome the crisis and ensure the sustainability of its activity.

 

The transaction should be finalized by the end of the year after approval by the Commercial Court of Créteil. This agreement, which provides for a global financial contribution of nearly 300 million euros, should allow Corsair, in the context of the unprecedented crisis affecting the air transport sector, to restructure and develop by implementing a strategic project. ambitious, in line with its positioning as a major player in overseas services.

 

The State thus confirms its desire to support French air transport, to preserve employment in a sector particularly affected by the crisis and to maintain a sufficient number of players on overseas services.

 

As part of this transaction, Intro Aviation and the TUI group will sell their entire stake in the capital of Corsair.

 

The consortium of investors, which becomes 100% shareholder, will play a decisive role in the success of Corsair.

 

On the initiative of two entrepreneurs, Eric Kourry and Patrick Vial-Collet, a consortium was quickly formed, bringing together entrepreneurs, particularly from the tourism and hotel sectors, based in the West Indies, Reunion Island and Guyana, as well as as local authorities.

 

Fully aware of the essential role of air transport for the economic and tourist development of the overseas departments and regions (DROM), the consortium acquires all of Corsair’s capital in order to support it in a restructuring project and development, and thus allow the maintenance of a sufficient number of actors on the services of the DROM.

 

Thanks to the very strong local footprint of its members, the consortium will very quickly help strengthen Corsair’s position in the Domian markets. Indeed, significant synergies in support of the development of the company could be implemented, notably with additional business contributions.

 

Corsair now has the means to weather the crisis and pursue the implementation of its strategic plan.

 

The financial support provided for in the framework of the protocol gives Corsair a solid financial basis to ensure its sustainability. With a global financial contribution of nearly 300 million euros to strengthen the company’s equity and cash flow, Corsair can continue to manage the crisis with confidence, continue to improve its level of competitiveness and prepare to seize all opportunities at the time of recovery.

 

The approach to reducing fixed costs has already made it possible to obtain very significant results. The signing of new open-ended agreements replacing the 134 pre-existing agreements and uses, in addition to cost reductions, will simplify operations and improve performance. The social partners have mobilized to bring the new agreements to fruition as soon as possible, in a responsible approach and committed to a sustainable business project.

 

Corsair can now continue with the implementation of the strategic project to become THE overseas company The fleet renewal and modernization project already underway is confirmed, with 5 A330-900 NEOs on firm orders. Thus, 3 NEOs will join the fleet in April, May and June 2021. The 4th NEO should be delivered in December 2021. Corsair will therefore operate a fleet of 9 aircraft from December 2021. In June 2022, the 5th NEO will replace the last A330-200 still present in the fleet which will then be considerably younger with an average age of 5 years.

 

The performance in terms of environmental protection will be significantly improved, thanks to a new engine for the NEOs, which reduces carbon emissions and noise pollution. Aware of its social and environmental responsibility, Corsair is thus rapidly modernizing its fleet and contributing to the energy transition of air transport.

 

In order to develop its position as an overseas airline, Corsair will concentrate on services from the overseas territories. In addition to strengthening the current services (Martinique, Guadeloupe, Réunion, Mauritius, Abidjan and Montreal), an expansion of the network is planned with the opening of new destinations including Mayotte from December 11, 2020.

 

Corsair International aircraft photo gallery:

Corsair International formally ends the Boeing 747 era

Corsair International operated its last Boeing 747 revenue flight (SS 927 PTP-ORY with F-GTUI) on March 26, 2020. The Jumbos has been grounded since due to COVID-19 and the drop in passenger demand.

The pictured F-GTUI departed Paris (Orly) on June 15 bound for Kemble to be scrapped. The airliner performed a low pass after takeoff as a final salute after receiving a water cannon salute.

Now the airline has decided to permanently retire the Boeing 747 fleet with this announcement:

Translated from French:

Corsair is accelerating the renewal and modernization of its fleet with the exit of the three Boeing 747-400s.

After more than 30 years of operations, the departure of the last Boeing 747 on Monday, June 15, 2020 marks the end of the operation of the Jumbo within the company, and the French aerial landscape.

The already scheduled withdrawal of the 747s is part of Corsair’s strategy and thus confirms its desire to operate a homogeneous fleet, composed exclusively of Airbus A330s. The new fleet will bring more flexibility in terms of frequencies and will allow the company to operate more efficient and more environmentally friendly aircraft.

The last Boeing left Corsair after having transported more than 7 million passengers and operated more than 2,000 times around the Earth.

1990 marked the start of the Jumbo’s life at Corsair, then recognized as the largest commercial aircraft in the world. Corsair offered configurations up to 592 seats and allows millions of travelers to move.

The legendary Queen of the Skies has transported the company’s customers around the world by carrying out exceptional flights for more than 30 years, whether on behalf of pilgrims, medical flights, special missions for the UN or cultural and sports operations. The 747 has also marked the memories of thousands of customers who flew to distant destinations like Los Angeles, San Francisco, Tahiti and Bangkok.

Corsair was one of the only two air carriers in the world to have operated all versions of the 747, from 100 to 400, and the SP.

Preceded by its two little brothers, “SUN” and the “SEA”, which left on June 9 and 12 respectively after having transported more than 7 million passengers each, “TUI” leaves the Corsair fleet having exceeded the emblematic threshold of 100,000 flight hours.

Type Retired: March 26, 2020 (flight SS927 PTP-ORY with F-GTUI, ferried to Kemble on June 15, 2020)

Above Copyright Photo: Corsair International Boeing 747-422 F-GTUI (msn 26875) YUL (Gilbert Hechema). Image: 912653.

Corsair aircraft slide show:

Corsair International launches service to Miami

Corsair, the long-haul French carrier, announced the kick off of non-stop flights from Miami to Paris-Orly which began in June 2019. Miami is the first US destination where Corsair will begin operations.

Flights to Paris departing from Miami International Airport are currently scheduled for Monday, Wednesday, Friday, and Saturday, and starting in December of 2019, daily flights will be available. Travelers will arrive to Orly airport, located very close to town, and easily accessible via public transportation.

In cooperation with the SCNF, the French railways, Corsair will offer passengers the opportunity to continue with another leg of their trip to destinations like Bordeaux or Lyon. Via the train, passengers can schedule visits to 18 cities via the French bullet train, while booking their entire trip on the Corsair site.

The airline offers three types of service – business, premium economy, and economy – to satisfy the needs of every kind of traveler. Business class passengers are offered a special check-in process, expedited security and lounge access. Onboard, travelers will be provided an iPad, which can be used for in-flight entertainment along with noise cancelling Sennheiser earphones. Passengers can also enjoy catered meals, making it a smooth and enjoyable evening flight.

Photo: Corsair.

TUI Group sells a majority stake of Corsair to INTRO Aviation

Corsair International Airbus A330-243 F-HCAT (msn 285) ORY (Jacques Guillem). Image: 946015.

TUI Group has made this announcement:

  • German aviation investor acquires majority stake in French scheduled carrier
  • Corsair’s Employee Trust Fund and TUI to retain minority stakes
  • Further milestone in the implementation of TUI’s strategy in all business segments

TUI is the world’s leading tourism group. Since 2014, its portfolio of subsidiaries and international shareholdings has been clearly aligned to help implement the Group’s strategy. The Group has now taken the next step towards becoming a “pure play tourism” company with the sale of the French scheduled carrier Corsair. TUI Group has sold a majority stake in its French airline Corsair to German investor INTRO Aviation. INTRO will acquire a 53 percent stake in Corsair as a first step. Under the agreement, TUI Group will initially retain a minority stake of 27 percent, while Corsair’s Employee Benefit Trust will retain a 20 per cent stake. The financial details of the agreement have not been disclosed.

The French long-haul scheduled carrier is unable to deliver any synergy effects for TUI Group, TUI tour operators and cruise companies, and the Group’s five European charter airlines. The sale will reduce TUI’s fleet by seven long-haul aircraft: three 747-400s as well as two A330-200s and A330-300s each.

“We are consistently transforming TUI to focus on tourism, its core business. Here, we are investing in hotels and cruise ships, and increasingly in holiday experiences in the destinations. These are segments in which we are growing, and where we are continuing to expand our global activities. We are exiting non-core business areas that do not leverage any synergies for the Group. The sale is the right move for TUI and will also benefit Corsair and its staff,” said TUI CEO Fritz Joussen.

Since the merger and integration of its former subsidiary TUI Travel at the end of 2014, TUI AG has successfully transformed from a trading business to the world’s leading integrated tourism group focusing on hotels, cruise ships and destination activities. This strategy resulted in the sale of numerous non-core subsidiaries and it has increased the Group’s leeway for comprehensive investments in hotels, ships and digital platforms in order to strengthen its future business.

The sale now initiated will create new and sustained prospects for the French airline Corsair and its employees. The investor is specialised on aviation and investments in aviation companies. Corsair’s business will be part of the investor’s core business.

Copyright Photo: Corsair International Airbus A330-243 F-HCAT (msn 285) ORY (Jacques Guillem). Image: 946015.

Corsair aircraft slide show:

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TUI Group finalizes its order for one Boeing 787-9, converts two 787-8 orders to the larger 787-9

Boeing logo (medium)

Boeing (Chicago, Seattle and Charleston) and TUI Group, one of the world’s largest integrated leisure travel companies, have finalized an order for one 787-9 Dreamliner with an option for one further 787-9. The order is valued at $257 million at current list prices. TUI Group also announced that it will substitute two unfilled orders for 787-8s for two 787-9s.

TUI Group logo-1

The European leisure group will operate a fleet of 13 787-8s from this summer and with today’s announcement will add three 787-9s to its fleet within the next three years.

The 787-9 complements and extends the 787 family. With the fuselage stretched by 6 meters (20 feet) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 830 kilometers (450 nautical miles) with the same exceptional environmental performance – 20 percent less fuel use and 20 percent fewer emissions than the airplanes they replace.

There are six airlines in the TUI Group operating 144 medium and long-haul aircraft, including the 787. The airlines are TUIfly, Thomson Airways, TUIfly Nordic, Jetairfly, Corsair International and ArkeFly (Arke), serving more than 180 destinations around the world. Throughout its history, Boeing has delivered more than 165 airplanes to TUI Group airlines. As well as the orders for 787s, TUI Group also has ordered 60 737 MAXs.

In addition to TUI Group’s selection of the efficient 787 Dreamliner and 737 MAX, TUI Group is a partner on the Boeing ecoDemonstrator 757, which is currently testing new technologies to reduce airplane carbon emissions and noise.

Videos: The Thomson Boeing 787-8.

Video: Flight review: Thomson Boeing 787-8 to Puerto Plata: This is a flight review of our Thomson Airways Boeing 787-8 Dreamliner flight to Puetro Plata (Gregorio Luperón International Airport) in the Dominican Republic in the Caribbean. We flew in economy class called “Dreamliner Class” on the Dreamliner. All footage of the journey is filmed from the economy class cabin. Our flight crew was mainly British with a Scandinavian stewardess on board too. Our Thomson Airways Dreamliner (Boeing 787-8) had registration number G-TUIA and was named “Living the Dream”. Our flight started at Copenhagen Airport in Denmark and the aircraft passengers where mainly Scandinavians (Swedish and Danish nationality). Our charter holiday trips where booked via Star Tour (name for TUI in Denmark) (Fritidsresor as TUI are called in Swedish) which is the same as TUI travel in the UK and Germany.

Copyright Photo below: Evert Keijzer Ironbird Photography/AirlinersGallery.com. Jetairfly (TUI Airlines Belgium) Boeing 787-8 Dreamliner OO-JDL (msn 34425) beautifully flies over the English Channel in the 2012 TUI livery.

Jetairfly aircraft slide show: AG Airline Slide Show

 

 

 

TUI AG to sell Corsair to Groupe Dubreuil, the owner of Air Caraibes

Corsair International (Paris-Orly), the French airline unit of TUI AG, will be sold to Groupe Dubreuil, the owner of Air Caraibes. Both carriers will be operated separately according to this report by Bloomberg.

According to Bloomberg, “Dubreuil, who sold French carrier Regional Airlines to Air France in 2000, said he plans to sign a lease deal for three A350s from an unspecified supplier, adding to six of the wide-body twinjets that are already due to arrive from 2016 through 2023 — three ordered outright for Air Caraibes and three to be leased from ILFC, now owned by AerCap Holdings NV.”

Read the full report: CLICK HERE

Top Copyright Photo: Jacques Guillem/AirlinersGallery.com. The three Corsair 747-400s are currently configured in a high-density two-class 533 seat layout and are too big for the current routes and will be retired in 2017. Boeing 747-422 F-GTUI (msn 26875) taxies at the Paris (Orly) base.

Corsair aircraft slide show: AG Airline Slide Show

Air Caraibes aircraft slide show: AG Airline Slide Show

 

Air Caraibes logo-1

Below Copyright Photo: Terry Wade/AirlinersGallery.com. Air Caraibes’ Airbus A330-223 F-OFDF (msn 253) holds short of the runway at London (Gatwick).

Corsair Route Map:

Corsair logo

Corsair 2.2015 Route Map

AG Pick the best shots

Corsair International accepts its first Airbus A330-300

Corsair International (Paris-Orly) yesterday (November 27) took delivery of the first of two A330-300s ordered from Airbus. The aircraft was delivered at a special ceremony in Toulouse attended by Corsair Chairman, Pascal de Izaguirre.

This new A330-300 is part of TUI’s commitment to invest in today’s greenest aircraft and to strengthen services from  Paris across the Atlantic Ocean, to the French West Indies, Canada and West Africa  and to the Indian Ocean destinations The aircraft is the first to be delivered from the two  A330-300s ordered in December 2010. It will enter in commercial service by end of this month .

Copyright Photo: Eurospot. Airbus A330-343E F-WWCZ became F-HSKY (msn 1359) on the handover at Toulouse.

Corsair International: 

Corsair to resume weekly service to Cancun on November 1

Corsair International (formerly Corsairfly) (Paris-Orly) is planning to resume weekly Paris (Orly)-Cancun service with Boeing 747-400s starting on November 1 according to Airline Route.

Copyright Photo: The Corsair fleet is being repainted from its Corsairfly and TUI livery to the new “shades of blue” 2012 livery. This former United Airlines Boeing 747-422 F-GTUI (msn 26875) displays the 2001 TUI color scheme.

To see the various liveries – Corsair Slide Show: 

Current Route Map:

Please click on the map for the full view.

Corsair International introduces its new color scheme on this Airbus A330

Corsair International (formerly Corsairfly) (Paris-Orly) as planned, has introduced its new color scheme on this Airbus A330-200.

Copyright Photo: Gilbert Hechema. Airbus A330-243 F-HBIL (msn 320) completes its final approach into Montreal (Trudeau) in the new livery.

Corsair: