Air Caledonie management stated the carrier is facing bankruptcy due to local protests over fare increases by the carrier (AFP/The Age, 05-Aug-2011). Air Caledonia human resources manager Olivier Testmalle stated the crisis was costing Air Caledonie more than EUR80,000 per day with disruptions also affecting the islands' tourism sector in the peak holiday season. "There is a clear risk of bankruptcy. There is no more cash coming in and we could find ourselves insolvent within a month," Mr Testemalle said.
Air Caledonie facing bankruptcy amid local protests over fare increases
You may also be interested in the following articles...
US airlines hold tense contract talks: straining labour relations as pilots demand market pay rates
Just as the magnet of airline profitability is attracting investors, the same magnetic fields are proving to be irresistible forces for labour. As a consequence, some major US airlines remain bogged down in contentious labour negotiations that have resulted in a swarm of negative publicity for those companies. The management teams of airlines such as Southwest Airlines and Delta are attempting to navigate the conclusion of labour deals that offer fair compensation and benefits to employees, while at the same time making declarations to shareholders and investors about a transformed industry delivering consistent and record profits.
The continuing labour turbulence for Delta, Southwest and Hawaiian reflects the impatience of employees, anxious not to be left behind as airline profits grow. Those airlines face the challenge of negotiating contracts that reward labour for its contribution to stable profitability, while also ensuring that the productivity in those agreements creates a minimum level of cost inflation.
Stakes are high for both management and labour in the current round of contract negotiations, which means that collective bargaining could drag on for many months. As airline executives continue to reiterate their desire to reach new contracts, labour’s rhetoric for market rate pay is growing stronger.
(Note: this report was compiled prior Southwest Airlines reaching a tentative agreement with management on 29-Aug-2016)
South Pacific aviation markets will be defined by China’s expansion
The nature of the South Pacific's geography makes finding the right partners for its airlines essential for their survival in international long haul markets – as most are.
The region is characterised by relatively liberal access regimes and by partnerships of varying levels – in New Zealand especially, where Air New Zealand’s international network is dominated by JVs. Virgin Australia has built a ‘virtual alliance’ alongside HNA, Singapore Airlines, Etihad and Delta, with very little of its own metal flying outside Australia. At Qantas Group, international performance has improved markedly following its Emirates partnership, as its operating focus has shifted from Europe toward Asia and North America, with local JVs, and close partnerships with American Airlines and China Eastern continuing to grow and mature.
For all airlines in the region, the China market will define much of the growth over the coming decade. (This report is taken from the Jul/Aug-2016 issue of CAPA's Airline Leader)