The price of airline tickets on all the domestic, regional and intercontinental flights offered by Angolan airline TAAG will depend on the exchange rate fluctuation resulting from the currency auctions carried out by the Angolan central Bank, Angolan online newspaper Novo Jornal reported.
The measure was decided on the basis of recent changes in the national currency market and is the result of the company’s need to adjust the price of travel on its routes to this new reality, the newspaper said, citing a source from the Angolan airline’s communications office.
TAAG, like most other carriers operating in Angola, no longer sells tickets for routes that start at foreign locations in kwanzas, the Angolan currency, mainly due to the difficulty in repatriating dividends in foreign currency.
The changes, in terms of domestic routes, will not be applied to flights between Cabinda and Luanda, and vice versa, which, according to a Presidential Decree, will have a state-subsidised tariff that is intended to reduce costs from just over 39,000 kwanzas to 27,000 kwanzas per ticket.
The state subsidy granted to TAAG is due to the fact that Cabinda enclave is the only province that has no land connection with the rest of the country.
As a result of the first auction of foreign currency, after the kwanza stopped being pegged to the dollar, the euro was worth 221 kwanzas, against the previous administrative exchange rate set at 185 kwanzas and the dollar went from 166 to 185 kwanzas. (macauhub)