newstodate.aero
Jul 06, 2018 (newstodate): The management contract between the Icelandair Group's Loftleidir and Cabo Verde Airlines, due to expire in August 2018, will not be extended.
Instead, the government plans to complete the privatization process of the airline before the end of 2018, Cape Verde's Minister of Tourism and Transport told local media.
-In the process of privatization there is no need for a management contract, the minister said.
Loftleidir Icelandic, TACV Cabo Verde Airlines and the Government of Cabo Verde entered into a management agreement on the restructuring of the loss-making TACV Cabo Verde Airlines and position it as a key strategic asset to contribute to Cabo Verde's potential as a year-round tourist destination, and to develop Cabo Verdes position as a connecting hub with a CAT 1 airport linking four continents.
It now remains to be seen if the Icelandic group intends to place a bid on the carrier during the tender process. According to the agreement at least, Icelandair has preemptive rights to acquire 51 percent of the shares in the airline.
Instead, the government plans to complete the privatization process of the airline before the end of 2018, Cape Verde's Minister of Tourism and Transport told local media.
-In the process of privatization there is no need for a management contract, the minister said.
Loftleidir Icelandic, TACV Cabo Verde Airlines and the Government of Cabo Verde entered into a management agreement on the restructuring of the loss-making TACV Cabo Verde Airlines and position it as a key strategic asset to contribute to Cabo Verde's potential as a year-round tourist destination, and to develop Cabo Verdes position as a connecting hub with a CAT 1 airport linking four continents.
It now remains to be seen if the Icelandic group intends to place a bid on the carrier during the tender process. According to the agreement at least, Icelandair has preemptive rights to acquire 51 percent of the shares in the airline.