Cape Verde Government Reveals Restructuring And Privatization Plan For National Airline

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Written by Staff

Cape Verde’s Ministry of Economy and Employment outlined (May 23, 2017) the accelerated restructuring and privatization plan for TACV, approved by the Council of Ministers on May 11, as follows:

One ATR aircraft will cease to operate on Aug. 1 and TACV’s domestic services will be discontinued; Binter Cabo Verde will take over inter-island services and will seek to strengthen inter-island connections, with the aim to provide regular services to all airports.

The carrier will also seek intermodal transport connections to islands without airports; Binter Cabo Verde will establish a partnership covering TACV’s international services, allowing TACV to offer connections to domestic destinations; Binter Cabo Verde will transfer a 49 percent capital stake to Cape Verde’s Government, which will eventually make part of the capital available to the market; TACV’s international operations will be restructured with the participation of a strategic partner, which is expected to contribute capital and management; TACV’s MRO business will be restructured with the participation and management of a strategic partner; The restructuring of TACV is expected to result in a reduction in staff numbers, but the Government expects the process to create more jobs across the aviation sector in the long term.

From CAPA.

One ATR aircraft will cease to operate on 01-Aug-2017 and TACV’s domestic services will be discontinued; Binter Cabo Verde will take over inter-island services and will seek to strengthen inter-island connections, with the aim to provide regular services to all airports. The carrier will also seek intermodal transport connections to islands without airports; Binter Cabo Verde will establish a partnership covering TACV’s international services, allowing TACV to offer connections to domestic destinations; Binter Cabo Verde will transfer a 49 percent capital stake to Cape Verde’s Government, which will eventually make part of the capital available to the market; TACV’s international operations will be restructured with the participation of a strategic partner, which is expected to contribute capital and management; TACV’s MRO business will be restructured with the participation and management of a strategic partner; The restructuring of TACV is expected to result in a reduction in staff numbers, but the Government expects the process to create more jobs across the aviation sector in the long term.

Read more at CAPA.