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By Laurence Frost
PARIS, Sept 19 (Reuters) - Air France-KLM pulled
back from a rescue bid for Aigle Azur on Thursday, missing an
overnight court deadline to improve its earlier offer for part
of the collapsed budget carrier's operations and staff.
An Air France spokeswoman confirmed it had decided against
submitting an expected joint bid with long-haul niche carrier
Air Caraibes "because our conditions for doing so weren't met."
Aigle Azur, whose biggest shareholders are China's HNA Group
and Brazilian entrepreneur David Neeleman, has suffered in the
wake of a botched long-haul expansion.
Air France's withdrawal deals a blow to government-backed
efforts to find a buyer for part or all of Aigle Azur as a going
concern and save a large proportion of its 1,150 jobs.
Aigle Azur's looming bankruptcy is the latest among smaller
European airlines struggling with higher fuel costs and stiff
competition from low-cost rivals.
The privately-held carrier, founded in 1946 to serve Algeria
and other north African routes, was granted protection from
creditors early this month and grounded its fleet of 11 Airbus
jets within days, stranding some 19,000 passengers.
Other potential bidders include British low-cost operator
Easyjet, which had submitted an earlier "expression of
interest" in Aigle Azur's operations from Paris Orly, including
valuable take-off and landing slots.
FAST-CHANGING
Lionel Guerin, a former Air France executive, has also
resubmitted a new bid contingent upon 15 million euros in new
government financing, according to French news site La Tribune,
which first reported Air France's withdrawal.
Absorbing Aigle Azur operations would have required Air
France unions to waive internal rules barring the carrier from
granting any seniority or flight captain roles to new hires.
Air France shares were little changed at 9.11 euros at 1021
GMT.
Transport Minister Jean-Baptiste Djebbari remains in contact
with potential buyers and their unions in a "fast-changing
situation", a French official said, adding that bidders can
legally cancel any withdrawal within 48 hours.
Reuters was unable to contact Guerin, while a spokeswoman
for Air Caraibes parent Dubreuil Group did not immediately
respond to requests for comment.
The Evry commercial court south of Paris began Aigle Azur's
liquidation on Monday under a "going concern" process that buys
more time for potential rescue bids.
The court resumes hearings on Sept. 23, with the carrier's
liquidation scheduled to begin four days later, in the absence
of any agreed takeover plan.
(Reporting by Laurence Frost; Writing by Benoit Van
Overstraeten; Editing by Christian Lowe and Alexander Smith)
