Cape Verde delays privatization of national airline

23 July 2007

Praia, Cape Verde, 23 July – The government of Cape Verde has decided to keep a controlling state in national airline TACV and will allow other companies to seek partnerships in the carrier, officials have said.

Praia government spokesperson Cristina Fontes Lima said Friday that TACV’s share capital is to be raised “and then an IPO will be considered” to privatize the airline.

TACV has been managed by Sterling Merchant, an investment banking firm, since January to prepare the privatization process, due to occur later this year or early 2008.

Under the restructuring program Some 100 TACV workers have been made redundant and many of the airline’s offices have shut, meaning tickets can only be bought in Praia at the city’s airport.

TACV flight personnel launched an overtime ban in January in support of their demands for salary increases causing frequent delays to mainly inter-island services. (macauhub)