Government sees TACV back in the air earlier than expected in December 202
Transportes Aéreos de Cabo Verde (TACV) has been grounded for almost two years. Since its re-nationalisation in July, the new management team has been working with the government for a quick resumption of operations.
TACV is expected to take off again sooner than expected. The Cape Verdean Prime Minister revealed this in Parliament on Wednesday 24 September, reports the Portuguese news agency LUSA.
"To the question of the PAICV deputy, about what would happen to the debts contracted by TACV, with the guarantee of the state, we will take the necessary decision. The State will assume its responsibilities towards the national company and its restructuring. And if everything goes according to plan, TACV will restart its operations in December of this year", replied Ulisses Correia e Silva.
This statement by the Head of Government contrasts with the previous announcement made by the Minister of Tourism and Transport on 4 September last, at the end of the 2nd World Forum on Tourism Investment in Africa, which took place on the island of Sal. At that time, Carlos Santos projected the company's (formerly CVA) relaunch in six months, in March 2022.
The carrier has been grounded since 18 March 2020, firstly because of the Covid-19 pandemic, and secondly because of a lack of financial resources. It was these financial difficulties that motivated the state to renationalise the company on 6 July.
As a reminder of the facts, the Cape Verdean State had initiated the process of privatisation of CVA in March 2019 by transferring 51% of the shares to Loftleidir Cabo Verde (a 70/30 joint venture between the carrier Loftleidir Icelandic and other Icelandic investors) against a commitment of 6 million euros to be injected by the strategic partner in addition to the 1.3 million euros representing the amount of the acquisition. The divestment approach continued with the sale of 2.35% of the shares to a collective of workers, then 7.65% to the Cape Verdean diaspora in February 2020.
But in the midst of a health crisis and after several months of pitfalls on the future of the national company, the State finally made a retropedalus raising an urgent need to "safeguard the interests of the company". In particular, it reproached the Icelandic party for "involvement in acts and contracts that reveal substantial and serious conflicts of interest". The government also denounced the failure to comply with the clauses relating to "the contribution to the strengthening of the economic and financial capacity and capital structure of the company". These accusations have always been contested by Icelandic investors, who have denounced the "actions of the Cape Verdean state, a minority shareholder".
In the wake of the renationalisation, Loftleidir Icelandic took over its two Boeing 757-200s from TACV. The Cape Verdean carrier, which employs nearly 300 workers, has already absorbed nearly 20 million euros since November, thanks to five loans guaranteed by the state.
