Air Austral's recapitalisation did not break EC state aid rules

The EC has said Sematra acted as an informed investor for the bankrupt airline.

The company had commissioned preliminary studies before it made its decision and its conditions for financial support allowed the airline time to begin restructuring, as opposed to a one-off unconditional payment.

"Sematra’s effects have led, in less than two years, firstly to a return to financial equilibrium and secondly to the launch of a restructuring plan that is as ambitious as it is sustainable. It is now with confidence that alongside my team, we will continue to develop the company with tenacity, passion and inventiveness," said Marie Joseph Malé, Air Austral's CEO.

The ruling dismissed a suit filed by Coasair.