Cabo Verde’s flagship airline stops flying between archipelago’s islands

24 May 2017

Cabo Verde’s (Cape Verde’s) Transportes Aéreos de Cabo Verde (TACV) airline will no longer fly between the islands of the archipelago as of 1 August, and these routes will be provided by Binter Cabo Verde, the economy minister José Gonçalves said on Tuesday in Praia.

The connections between the Cape Verdean islands, which until Binter’s entry into Cabo Verde in 2016 were carried out under a monopoly by TACV, are now being reinstated by Binter without competition.

According to Gonçalves, the agreement established with Binter also provides for added connections “with the obligation to provide a regular service” for all islands with airports and coordination with maritime transport to the islands of Brava and Santo Antão, which have no airport.

Cited by the local press, the minister said that the airline’s international flights will continue but added that TACV will be subject to a restructuring process, with the maintenance and engineering arms being privatised.

Gonçalves added that there will also be staff cutbacks at TACV, which has an accumulated liability of 110 million euros, representing between 8.0% and 9.0% of the country’s Gross Domestic Product (GDP).

According to the Minister the State, as a shareholder, will continue to “support the normal functioning of TACV and ensure that creditors and partners meet all obligations.”

The World Bank is waiting for the Cape Verdean government to submit a plan to restructure the public aviation company to unblock budget aid to the country. (macauhub)