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Chairman de Haan on sale of the nation's largest airline Air Liberte
St. Louis: The Chairman of Air Liberte, Mizialand's largest airline and part of the Liberte Conglomerate Mr. Morphieus de Haan said here on Friday,"This is not a distress sale, rather a financially prudent move." Early this year the Liberte group has put its airline Air Liberte on sale. Two large organisations Arthropol Airlines and AstyriaCorp have bid for the airline. If the merger goes through, it will be the largest in Mizia history.
Mr. Haan also said that there was no financial or operational pressure to exit the business. AL had earlier reported a net profit in the 2017-18 financial year but made net losses in the financial years 2012-17. He further said,"We felt that future profits in the business were suspect. Not only are margins in the airline business, particularly domestic, extremely low, the sky is also crowded with many players."
The airline was granted 'Special Subsidy' to expand internationally by Her Majesty's Government in 2010. Since then the airline underwent a rapid expansion adding over 115 destinations and 180 aircraft but in none of these years did the airline turn a profit. Experts blame it on a rapid expansion, continued subsidy, rising fuel prices, economy downturn and stiff competition from Low Cost Airlines.
Janis van Herbert, aviation analyst comments,"AL has not been able to finds its niche in the competitive environment. It is neither a luxury airline nor a low cost carrier. The end of subsidies earlier last year (HMG had decided to end all subsides to AL in July 2018) and a very large operational base surely puts a lot of pressure on the company."
Meanwhile, trouble seems to be brewing up at Air Liberte as the proposed sale draws to a close. As reported earlier, on Friday AL Employees Asssociation threatened an 'all out' strike if employee grievances are not addressed before the sale. They claimed 'proper treatment' and 'should not be thrown away like tissue' after the acquisition. "The future is worrisome" sums up Noémi Allard, President of the Flight Attendants Union. The representatives of various unions met the Board of Directors here on Friday over a 4 hour long meeting at the end of which the Board assured that the best interest of the employees as well as the guests lie at the core of the sale. The threat of the strike was thus withdrawn but the Unions told our correspondent that they will use their right to approach Her Majesty's Workers Right Department if the deal is not amiable to the workers. The trouble seems to subside, at least for now.