Icelandair signs management agreement with Transportes Aéreos de Cabo Verde

16 August 2017

Airline Lofteidir Icelandair will manage Cape Verdean airline Transportes Aéreos de Cabo Verde (TACV) under a contract signed on 10 August with the government of the archipelago, according to an official statement released on Tuesday in Praia.

Prime Minister Ulisses Correia e Silva said at the signing ceremony that the management contract marks the beginning of a new era in the development of the air transport sector in Cabo Verde (Cape Verde) and added that he was convinced that the solution found for the TACV problem, “is viable, sustainable and goes beyond what management and governance models in the air transport sector have been.”

“Cabo Verde has managed through Icelandair to get the best partner for TACV to have excellent management and to create an air hub,” said Correia e Silva, adding that the hub will create more economic value and greater sustainability through more markets, more customers, and providing TACV with management capacity and competitiveness.

The management contract signed between the government of Cabo Verde and the Icelandair group is valid for one year, with a possibility of renewal and is intended to prepare TACV for privatisation.

Cabo Verde will have to pay US$925,000 for signing the contract, of which US$100,000 is due for the first month and US$75,000 for each of the remaining 11 months, intended to cover the costs of the human and technical resources IcelandAir will assign to the operation. (macauhub)