PARIS. France’s second-largest airline Aigle Azur, which went into receivership this week, plans to cancel all flights starting Friday night as it seeks a takeover bid to save the company, according to an internal document seen by AFP on Thursday.
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Aigle Azur had warned earlier that some flights would be halted and all ticket sales suspended from September 10, the day following a deadline for submitting bids to acquire the airline.
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“The company’s financial situation and the resulting operational difficulties do not allow us to ensure flights after the evening of September 6,” according to a statement addressed to employees.
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It said the company had been “forced to resort” to an “unfortunate option that puts out clients, our teams and our partners in great difficulty.”
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“The search for takeover offers is continuing actively,” it added.
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The airline had initially pledged to maintain operations after filing for bankruptcy protection on Monday, following years of losing millions of euros.
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The move came after a shareholder coup ousted chief executive Frantz Yvelin last week, accusing him of making “strategic mistakes over the past two years.”
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Destinations in Algeria make up half of Aigle Azur’s operations, and the company posted revenues of 300 million euros ($329 million) last year after transporting some 1.9 million passengers.
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But it wasn’t enough to stem heavy losses that last month prompted the airline to announce plans to sell its Portugal routes to low-cost rival Vueling.
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Its shareholders are now hoping for a white-knight offer for the airline and its 1,150 employees, including some 350 based in Algeria.
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The largest shareholder in Aigle Azur is the Chinese conglomerate HNA Group, which owns Hainan Airlines, with a 49 per cent stake.
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David Neeleman, an American airline entrepreneur whose companies include JetBlue and TAP Air Portugal, owns 32 per cent, and French businessman Gerard Houa owns 19 per cent.
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