Cancelling aircraft orders may cost Angola US$62.9 million

18 April 2019

A decision to cancel orders to buy aircraft, announced this week, could cost Angola US$62.9 million, as US manufacturer Boeing plans to charge the amounts it is entitled to, according to the Angolan press.

A presidential dispatch of 9 April specifically cancelled the authorisations given in January to sign contracts with Boeing, of the United States and Bombardier, of Canada, to purchase 15 new aircraft by 2022.

“The Minister of Finance, in conjunction with the Minister of Transport, should boost efforts among sellers and financiers to reverse all financial transactions and minimizse financial and reputational damage to the Angolan state,” said the presidential dispatch 52/19.

The Valor Económico newspaper quoted a Boeing source as saying, “what has already been paid will certainly not be returned,” and that the company will demand the remainder, which amounts to US$59.8, as Angola had already almost US$4 million of a total of US$62 million.

The US company justified its position explaining it had already spent a lot of money on configuration of the B787s for Angolan airline TAGG, the first three of which had deliveries scheduled for between October and November of this year.

The contract with Boeing is for the purchase of six B737 MAX and eight B787 aircraft replacing the airline’s five B737-700s and eight B777s and was approved in January this year. (Macauhub)