Angolan flagship airline Taag “faces the greatest financial crisis in its history,” said the new CEO of the company, in a document distributed at a meeting of directors and now published in Luanda.
In the document, Peter Murray Hill added that “the losses accumulated over many years” had so far been covered “by government subsidies”, which was no longer possible given the current economic situation, according to Portuguese news agency Lusa.
“With the drop in revenues from passengers and cargo, the challenge becomes greater with each passing month,” said the board of directors, and the CEO announced that “one of the first sacrifices” involved everyone accepting that “this month and probably next month,” it would only be possible to pay the “basic salary.”
The Angolan government and Emirates Airlines this year signed a contract for introduction of “professional world-class management” of Taag, improving “substantially the quality of service” and the financial restructuring of the Angolan company, which in 2014 recorded losses of US$99 million.
The contract to manage the Angolan public air carrier signed with Emirates for the 2015 to 2019 period provides that the company will present positive operating results of US$100 million in 2019.
In addition to Peter Murray Hill, Emirates nominated as executives Vipula Gunatilleca (financial and administrative areas), Patrick Rotsaert (commercial area) and Donald Hunter (operations) at Taag.
The new board also includes four non-executive members, appointed by the government of Angola. (macauhub/AO)