XL Airways seeks strategic investor and shift in business model

XL Airways France shareholders are seeking new investors, particularly foreign companies. The proposal for a strategic investor comes two years after current shareholders took over the French airline.

The funds would be used to ensure the development of the airline, as rising oil prices and competition weigh on its earnings. The carrier posted an large operating loss for the fiscal year ended in September 2018.

Talks are reportedly in progress with several parties, with foreign companies capped at 49% should they invest. Regardless of the investment, management at XL Airways is redefining the business model of the company, with plans to drop the pure 100% economy class product in exchange for the introduction of a premium product across the fleet.

The carrier is also facing a potential strike in mid January 2019, as its flight attendants' union issued a strike notice over a wage dispute.