Air Calédonie files for Chapter 11 bankruptcy, cancels all flights

National carrier Air Calédonie has filed for bankruptcy protection in regional French courts.

AIR CALEDONIE ATR 72-600 F-OZLI (MSN 1380)

Air Calédonie, the flag carrier of the remote French overseas territory of New Caledonia, has been dealing with nearly two months of protests sparked by the decision to relocate its base from the capital, Nouméa, to a farther airport. The airline operates in a remote South Pacific territory made up of over 130 small islands. For many residents, it’s a vital link to hospitals, grocery stores, and other essential services.

After months of protesters blocking airfields at several airports across different islands, Air Calédonie hasn’t been able to operate its scheduled flights and has put 220 employees on a leave of absence in mid-March.

A representative told the media that without resuming service, the airline's cash reserves "will be depleted by early April. With no resolution reached, Air Calédonie filed for the equivalent of Chapter 11 bankruptcy protection under French law on the 27th of March, per RNZ, and it seeks permission to resume certain domestic flights under court protection.

If the proposal is rejected, the airline goes into receivership, whereby its assets will be placed under the control of an independent third party.

The airline said the flight cancellations left "almost three hundred families" stranded and expressed hopes of resuming operations once its proposal is approved by a judge.

Société Calédonienne de Transports Aériens, officially known as, Air Calédonie, started out as Transpac on the 9th of December 1954. It’s the domestic airline of New Caledonia, a French collectivity, with its headquarters at Magenta Airport (GEA/NWWM) in Nouméa. From there, it runs regular passenger and cargo flights to destinations within the territory. The airline is jointly owned by the Government of New Caledonia (52.45%), Loyalty Islands Province (26.21%), North Province (14.55%), South Province (5.16%), private investors (1.10%), and Air France (0.53%).

On the 9th of February 1961, financial support was granted to Transpac's Board of Directors by the regional government, and Transpac was renamed to Air Calédonie.

This article is all about Air Calédonie, the domestic airline of New Caledonia, NOT Air Calédonie International.