New Caledonia's domestic air carrier says it's facing bankruptcy due to industrial action and protests over fare increases, with people blockading regional airports.
The management of Air Caledonie say the crisis is costing it 120 thousand US dollars a day, with the diisruption also hitting the territory's tourism sector at the peak of the holiday season.
The airline's head of human resources, Olivier Testemalle, says there's a clear risk of bankruptcy and the company could find itself insolvent in a month.
The protests over fares follow industrial action which finished last weekend.
The government is to host talks next Wednesday in the hope of finding a solution to the crisis.