Cape Verdean government says it will analyse problems of flagship airline TACV

4 November 2015

The Prime Minister of Cabo Verde (Cape Verde) has given assurances that he will tackle the problems facing the country’s flagship airline Transportes Aéreos de Cabo Verde (TACV), the spokesman for the Pilots’ Union said Tuesday in Praia.

Ricardo Abreu, after a meeting with José Maria Neves, said the Prime Minister had assured him that the government would deal with the airline’s difficulties, particularly its liabilities, accumulated debt and insufficient equity.

Cited by weekly newspaper A Semana, the spokesman stressed that measures to ensure TACV remains in operation required resolution of liabilities, which currently total 10 billion escudos (US$99 million) as well as the replacing equity.

The Cape Verdean government intended to privatise TACV by the end of 2015, but Finance Minister Cristina Duarte, last week in parliament admitted there had been difficulties in the company’s sales process.

“We have not been able to put TACV on the market,” said Duarte, explaining the difficulties were due to “chronic debt” of a company, which is small and has a limited number of aircraft and routes.

TACV, which has been in operation for 57 years, is the only airline offering inter-island routes in Cabo Verde, and has a monopoly on routes to the United States of America. (macauhub/CV)