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Eversheds Sutherland advises Air Austral on the purchase of three A220-300 Aircraft from Airbus with financing provided by Export Development Canada

  • France
  • General

15-10-2021

 

As part of its global development strategy which is focused on increasing its profile in the Indian Ocean and also the international market, Air Austral, the airline company based in La Réunion  has renewed its short and medium-haul fleet with the acquisition of three A220-300 aircraft delivered by Airbus Canada. 

The team has been advising Air Austral from the synthesis of the transaction. They assisted Air Austral from the negotiation of the aircraft purchase agreement with Airbus Canada to setting-up of the pre-delivery financing provided by Investec and finally up to the final delivery of each aircraft which was financed by Export Development Canada. Eversheds Sutherland played a vital role in getting the transaction across the line. They also provided advise in connection with structuring the tax credit which was provided to Air Austral by the French Government. This was a key aspect of the transaction which took months of work from all parties involved. The transaction was highly complex and the closing occurred thanks to the close co-operation of all the multiple parties involved.

With this large acquisition, Air Austral is the first French airline to integrate this type of latest generation aircraft which is in line with its eco-responsible approach. Considering the context of the current health crisis, this is a very encouraging sign for the aeronautic sector, which has recently been severely disrupted.

For the purposes of acquiring the three aircaft with the financing provided by Export Development Canada, Air Austral was advised by the Eversheds Sutherland’s team led by Sindhura Swaminathan together with support from Solomon Olukoya, Piaras Power, Tim Kiely, Aoife Malone on the financing aspects.

 

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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