Cabo Verde government subsidises loss-making air links

18 March 2016

The Cabo Verde (Cape Verde) government will subsidise domestic air routes that make a loss because they have a small number of passengers and are therefore not cost effective, according to a resolution recently published in the country’s Official Gazette.

The resolution states that, despite these routes having low traffic density, “they are considered vital for the economic and social development of Cabo Verde”, after taking into account public interest, the possibility of using other means of transport and their ability to meet needs.

“Accordingly, and until it is approved, the law that governs the obligations of public service and state financial compensation, under this resolution, creates a mechanism for ensuring the regularity, frequency and quality of the operation of such routes,” the document said.

This mechanism of allocating subsidies for air transport also aims to reduce the social and economic gap that affects certain islands, encouraging greater movement of people and promoting tourism, as well as compensating the national air carrier for providing this service. (macauhub/CV)