Air Caledonian’s social program to cut about 100 jobs

Unrest related to electoral reforms rejected by the separatists led to a sudden disruption between May 13 and June 5 of traffic on the domestic company, which provides most of the air routes between Grande-Terre and the rest of the archipelago.

While security in the area remains unchecked, recovery efforts are underway but with difficulty, and passenger numbers are currently 70 percent lower than before the unrest began.

“The direct impact of the decline in traffic is a loss of €14.2 million in commercial revenue in 2024,” the company’s general manager Daniel Hombouy told the media.

After 270 of Aircal’s approximately 350 employees were placed on partial unemployment, the company’s management presented a recovery plan to employee representatives at the social and economic committee last week.

It provided for a collective dismissal procedure involving between 100 and 130 people, according to management, but did not specify a timeline for the procedure.

In addition to this social program, the company will freeze all its investments in maintenance and spare parts, request an extension and lease one of its four ATR-72s.

Aircal’s turnover is 37.7 million euros in 2023. “The weekends are complicated and our visibility only lasts until August,” stressed Mr. Hongbuy.

“If we don’t take these steps, we will default on payments,” he warned.

To reverse this situation, management is counting on a subsidy of 5 million euros from the majority shareholder, New Caledonia.

Discussions are also underway with the state government to find additional financial support.

When asked by AFP, the transport ministry said it was “watching developments” but recalled that Aircalin’s shareholders were made up of the Caledonian government and the provinces.

The Caledonian government holds 50.3% of the shares, and the three provinces (South Province, North Province and the Loyalty Islands) hold 43.3%.

Management has drawn up a social plan that expects passenger numbers to stabilize at around 300,000 in 2025, a 35% decrease from the 2024 forecast.

She hopes that, among other measures, this plan should make it possible to restore financial balance next year.

On July 10, Aircalin, an international company operating mainly between New Caledonia and the Asia-Pacific region, announced a reduction in its flight schedule for 2024 to ensure its sustainability.