Air Austral, Corsair moot joint venture in light of Covid
Air Austral (UU, St. Denis de la Réunion) and Corsair International (SS, Paris Orly) have initiated discussions on a joint venture (JV) on routes between Paris and Réunion, a French overseas department in the Indian Ocean.
The proposed commercial cooperation agreement still needs approval from the French competition regulator (Autorité de la Concurrence) and labour unions, Corsair announced in a statement on August 17. Both airlines would keep their respective brands and commercial independence, it said.
The two carriers currently compete on routes between St. Denis de la Réunion (Air Austral’s home base) and Paris, with the Indian Ocean carrier serving Paris CDG, while Corsair is based at Paris Orly. Both also serve Dzaoudzi on Mayotte, a fellow French overseas department in the Comoros archipelago, ch-aviation schedules data reveals.
However, in light of the persistent health crisis affecting profitability, the joint venture would see the pooling of resources resulting in synergies and improved profitability of operations while providing enhanced services for passengers from the Indian Ocean island, Corsair said.
Amongst others, the JV would result in:
- a reinforced flight programme;
- more choice for passengers, including flights to two Paris airports – Paris CDG and Paris Orly – and more departure and arrival time slots;
- better connections for passengers thanks to the combined networks of the two airlines;
- more competitive fares; and
- an improved freight offer.
Corsair said the proposed agreement would contribute significantly to increased connectivity to French overseas territories and other destinations that could be served by the two airlines in Canada, Africa, and other Indian Ocean destinations such as Mauritius, Antananarivo (Madagascar), Mahé (Seychelles), and Moroni Int’l in the Comoros.
The announcement comes as moves are afoot for a new privately-owned airline in Mayotte, ZENA Airline (Dzaoudzi), which intends to launch flights to France (Paris and a second destination in Provence) and, regionally, to Réunion and Madagascar.
No stranger to joint ventures, Air Austral in 2017 signed a strategic partnership agreement with Air Madagascar (MD, Antananarivo) to become the airline’s 49% minority shareholder. That partnership was dissolved in July 2020 and the Malagasy government resumed control over its flag carrier. In 2018, the two airlines partnered with Kenya Airways (KQ, Nairobi Jomo Kenyatta) to boost their footprints in Africa and the Indian Ocean islands. After 21 years of serving Madagascar, Corsair was forced to quit flights to Antananarivo after it lost its traffic rights from St. Denis de la Réunion.