Air Transport World

Capricorn connection. (Air Austral) (Company Profile)

Air Austral promotes itself as a 'French airline' and its base on Re, union in the Indian Ocean. Both have made it profitable

REUNIONs--Air Austral calls itself "the French Airline of Capricorn," because it is based on the Indian Ocean Island of Reunion, which is just north of the Tropic of Capricorn. Reunion is an overseas department of France and thus, Air Austral is a French company. Its aircraft are registered in France. One reason for the airline's success is a tax advantage that France gives its overseas departments. This enabled Air Austral to acquire its two Boeing 737s under very favorable financial conditions.

But perhaps the main reason for the success--the airline has been profitable since its formation in 1990--is the astute management of its founder, Gerard Etheve. …

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