IBL Invests Rs 147 Million in Air Austral’s Capital

The IBL Group has announced a significant investment of Rs 147 million (approximately €3 million) in Air Austral, one of the leading airlines in the Indian Ocean region. This investment is part of IBL’s broader strategy, dubbed “Beyond Borders,” aimed at strengthening its presence and influence in the area.

IBL is currently entering discussions to join Run Air, a consortium of private investors that holds the majority share in Air Austral.

This move underscored IBL’s commitment to becoming a key economic player in the region.

The financial contribution from IBL is complementing a larger fundraising effort of €15 million (approximately Rs 735 million) intended to assist Air Austral, undergoing a recovery plan following financial difficulties exacerbated by the Covid-19 pandemic.

The partnership between IBL and Air Austral dates back over two decades, with the Mauritian group having established itself as a historical partner of the airline in the Indian Ocean, including its operations in Mauritius, Comoros, and Madagascar.

Moreover, IBL and Air Austral previously co-owned the airline Air Mascareignes, which was launched in 2008.

Arnaud Lagesse, CEO of the IBL Group, remarked, “We responded to an invitation from the Deleflie group, the leader of the private consortium that acquired the majority of Air Austral, to discuss IBL’s participation in the airline’s recovery plan.

Our dual objectives are to reinforce our presence in the economic and social fabric of La Réunion and to demonstrate our long-term commitment to the development of our sister island and the wider Indian Ocean region, including Mayotte.”

Lagesse emphasized that although IBL’s stake in Air Austral is minority, it is highlighting their involvement in the airline’s turnaround efforts in collaboration with new partners and with the agreement of the Regional Council of La Réunion.

IBL is a significant economic player in La Réunion, with a diverse range of operations.

The group is active in the construction sector through Bazalt Réunion and UBP Group, in retail with Run Market and Winners, in the beverage industry with Edena and PhoenixBev, and in high-end hospitality with the Lux Saint-Gilles hotel.

Source: l’Express