Government announces measures to save Cabo Verde’s national airline

5 November 2015

The government of Cabo Verde (Cape Verde) next week plans to announce the results of an audit to national airline TACV and measures to stabilise the company, the country’s Prime Minister said Wednesday in Praia.

José Maria Neves added that the government had been unable to find private partners interested in the company’s management and acknowledged that the flagship carrier was in “a very difficult and complex situation,” given that costs are much higher than revenues, it has a liabilities of 10 billion escudos (around US$99 million) and insufficient equity.

“TACV is undergoing great turbulence, which requires a combination efforts of the government, the management and all employees and what we are doing is an audit to identify the real treasury situation of and from there implementing measures to stabilise the company,” said the Prime Minister.

Neves said that one of the solutions involves restructuring the company or possibly the privatisation of its management, but said the state as sole shareholder, had been unable to find interested partners.

The Prime Minister also noted that the measures would be announced after an “wider meeting” with the board of directors of TACV, led by João Pereira Silva, adding it was necessary to stabilise the company, ensuring flights continued and securing jobs for revenues to start being higher than costs. (macauhub/CV)