Air link between Angola and Cabo Verde depends on subsidies

1 November 2016

TAAG Angola Airlines will have to suspend flights between Luanda and Praia, Cabo Verde, if it does not receive incentives or subsidies to keep the loss-making route operational, says Peter Hill, the airline’s Emirates-appointed British executive chairman.

Hill told the Angolan newspaper Valor Económico that the Cabo Verde connection is one of TAAG’s least profitable routes, “costing the company USD 2.5 million per year to transport an average of only 20 persons per flight, a luxury we cannot afford.”

The final decision rests with the Angolan government, which may manifest interest in keeping the flights between Luanda and Praia and be ready to subsidise it, he said.

The Cabo Verdean government’s interest must also be considered and could lead to lower landing fees or fuel-related costs, he added.

“If it is possible to reach an understanding on these issues we will keep the route as a public service,” Hill said, recalling that the company he manages “has to earn money.”

TAAG Angola Airlines is managed by a team appointed by Emirates under a cooperation agreement signed with the Angolan government in 2014.  (Macauhub)