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Rescue plan approved for Air Afrique.

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

A new rescue plan has been agreed to by the 11 African nations that co-own Air Afrique.

Under the new plan, Air France, another shareholder in the African carrier, will recruit some 500 more employees and inject about USD67m into the airline. The share held by the African nations will also be reduced from 68.44% to about 20% according to Xinhua News Agency. Air France will increase its stake to 35%.

The rescue plan has brought relief to employees of Air Afrique, who had feared forced layoffs. Unions had apparently been concerned that management intended to cut the 4,000-strong workforce by up to 50%. Senegal's President Abdoulaye Wade indicated however on 15 August that the carrier would keep the existing workforce, except those employees who chose voluntary redundancy, according to The Associated Press.

The 11 African nations holding a stake in Air Afrique are Benin, Burkina Faso, the Central African Republic, Congo, Ivory Coast, Mali, Chad, Mauritania, Niger, Senegal and Togo.

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Publication:Airline Industry Information
Date:Aug 16, 2001
Words:183
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