New Caledonia\'s domestic carrier is facing bankruptcy due to protests over fare increases that have seen locals blockading airports on the South Pacific archipelago, its management said Friday.The crisis was costing Air Caledonie more than 80,000 euros ($120,000) a day, Olivier Testemalle, the airline\'s head of human resources told AFP, with disruption also hitting the islands\' tourism sector at the peak holiday season.\"There is a clear risk of bankruptcy. There is no more cash coming in and we could find ourselves insolvent within a month,\" Testemalle said.The airline has been hit by industrial action that ended on July 29. Flyers have also been protesting against the airline\'s new fare structure and have been blockading airports in the Loyalty Islands and the Ile des Pins.On Friday, the company was only serving the islands of Ouvea and Tiga in the north of the archipelago, while flights on the more profitable routes to Mare, Lifou and Ile des Pins were grounded.The government is to host talks on Wednesday in the hope of finding a solution to the crisis. Locals fear the disruption could prove devastating to the islands\' tourism industry -- one of the key pillars of the economy.\"We\'re suffering considerable losses and tourists are annoyed. It\'s damaging the reputation of New Caledonia, which is already struggling to get by,\" one hotel manager said.
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