Times have changed: this old bastion of Public service hostile to privatization should agree today, after over a year of negotiations, the cession of its subsidiary Europe Airpost to Irish cargo airline Air Contractors for a sum of 47 million Euros. The deal will allow La Poste to focus on its core business and EAP to fly to new horizons with new aircraft.
There is no more Aeropostale, only a postal subsidiary, Europe Airpost. Public service is no longer incompatible with privatization. The hereiss of the Aeropostale should now be sold, after over a year of negotiations, to Irish cargo airline Air Contractors, a subsidiary of the Belgian Petercam investment fund and of the Compagnie Maritime Belge (CMB).
A historical deal for La Poste and the former Aeropostale
Exclusive negotiations started on 8th November have good chances of bearing fruit today, and should herald the first ever total privatization of a French postal subsidiary. A formality shrouded in discretion due to latent opposition of part of the personnel, who still preferred Air Contractors to French airline Aigle Azur. The transaction will need to be endorsed by a governmental decree - which could be opposed in the Conseil d'Etat.
It's the end of an era for the former Aeropostale, renamed Europe Airpost after its divorce from Air France in 2000. Less well-known than the flag carrier, it is nonetheless the second largest French carrier, with a fleet including 22 Boeing 737-300, 2 Airbus A300-B4, 4 Fokker 27, and 400 employees. On top of its night airmail activity (300 tonnes every night), representing the bulk of its business, the airline has developped a complementary day charter business with its 16 Boeing 737 Quick Change aircraft. The Irish owner has agreed to preserve jobs and to finance two new Boeing 737-700 next year, to be followed by three more - something that La Poste was unwilling to do.
Europe Airpost is in good financial health, with a 2006 turnover of 240 million Euros and a net benefit of 15 million Euros.
La Poste will now pocket the 47 million Euros sale price and focus on rail mail, possibly by creating a common subsidiary with (French Railways company) SNCF.
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There you go! I like a challenge, but it would save us both time if you would learn French
