Willemstad- InselAir in a press release today has confirmed that the company is in talks with Turks & Caicos-based interCaribbean about a possible take-over. The rumors were also confirmed by interCaribbean chairman Trevor Sadler.
A press release on Insel Air letterhead states: “The Government of Curaçao and the Administrators of InselAir International BV wishes to confirm it is in discussions with interCaribbean Airways. interCaribbean Airways has expressed an interest in InselAir International BV, where it can quickly respond to re-establish the company and its routes, and the opportunity to bring both brands under one umbrella, to create synergies in offering greater options for pan Caribbean travel”, according to the statement dated today, September 22, 2018.
Lars de Brabander, Executive Chairman for InselAir International BV stated that while details are to be finalized, the airline firmly believes that the takeover would be good for Curacao, the shareholders and the customers of InselAir.
“The current operation of interCaribbean would fit well into the current and previous network of InselAir, connecting the south Caribbean seamlessly with the northeastern and eastern Caribbean and although discussions with other possible strategic partners continue, this seems like an option toward a smooth strategic aviation alliance”, said De Brabander.
Airline observers consulted by The BES-Reporter have the necessary question marks about the potential take-over. They feel that while the details may look promising on paper, it remains to be seen how much cash interCaribbean put on the table to reach a deal with.
“Even if creditors would accept to receive 25 cents on every guilder owed, interCaribbean would still have to put about 42 million guilders on the table. This is separate from investment needed to re-fleet Insel Air and to provided needed working capital”, according to one of the consulted parties.
Another party pointed to the fact that interCaribben would be confronted with the same challenge which made Synergy Holdings (Avianca) refrain from making an actual bid. “Whichever way you look at it, they can never become the majority stakeholder in Insel Air.
No details have been made public as of yet what the deal between interCaribbean and Insel Air would entail, but would in any case, meet the requirements established by the bankruptcy court.