Corsair, a French airline, will receive €167.8 million in restructuring aid from the French government, following approval by the European Commission under EU State aid rules.
The funding consists of an €80 million loan write-off — originally approved by the Commission in December 2020 — and an additional €87.8 million in new financing, the European Commission announced on Tuesday.
The aid is subject to conditions, including measures to limit the impact on competition, such as a reduction in flight rotations and the release of airport slots.
Corsair specialises in flights between mainland France and its overseas regions, including Martinique, French Guiana, Réunion, and Mayotte, with operations based at Paris-Orly Airport.
Background to restructuring
In 2020, the European Commission authorised €106.7 million in restructuring aid for Corsair, along with €30.2 million in compensation for losses caused by COVID-19 travel restrictions.
Last year, French authorities requested changes to the original plan, citing ongoing financial difficulties resulting from unexpected external events.
The Commission launched a detailed investigation in February 2024 to assess whether the revised support package complied with EU State aid regulations, which set strict criteria for assisting companies in financial trouble.
The latest approval followed Corsair’s repayment — with interest — of previous state aid given in 2021 and 2022, as well as updated business plans and additional commitments from Corsair.
The Commission said the revised measures would enable Corsair to return to viability by the end of the restructuring period.
EU state aid rules require that companies receiving restructuring support demonstrate they will become self-sufficient, contribute to the costs themselves, and limit any disruption to market competition. These safeguards are intended to ensure that public money does not unfairly benefit one business over others.
