Cabo Verde Airlines has an uncertain future, and may close

9 April 2020

The future of Cabo Verde Airlines (CVA) is uncertain, and the air carrier may close due to the economic and financial effects of the Covid-19 pandemic, said on Wednesday in Praia the minister of Tourism and Transport, Carlos Santos.

The minister, who was speaking in an interview with Radio Cabo Verde, explained that air transport was the sector most affected by the pandemic of the new coronavirus, indirectly, creating difficulties for all airlines worldwide, who have had their activities suspended, due to the closure of borders around the world.

“For the third quarter of 2020 alone IATA predicts that there will be a loss of 39 billion euros for all air carriers around the world and CVA will not be an exception in that, precisely because it is a company that was in the process of taking off,” he said.

The losses have yet to be calculated, but Santos emphasised that just the fact that CVA’s aircraft, which are leased, have been on the ground for almost 30 days shows how complicated the situation is.

The future is still uncertain, because, he pointed out, the crisis is just beginning and we don’t know how long the pandemic will take, the minister said, adding that forecasts are not encouraging.

The minister pointed out, however, the existence of financial instruments that the World Bank and the African Development Bank are to putting together, with solutions that can be used for the aviation sector.

The government of the archipelago in March 2019 a state stake of 51% of the then public company TACV (Transportes Aéreos de Cabo Verde) for 1.3 million euros to Loftleidir Cabo Verde, a company owned 70% by Loftleidir Icelandic EHF (which took 36% of CVA) and 30% by Icelandic entrepreneurs. (macauhub)