newstodate.aero

Oct 19, 2020 (newstodate): Cabo Verde Airlines has certainly not developed into a profitable project for the Icelandair Group that in 2019 set up Loftleidir Cabo Verde to take 70 percent in the carrier.  
   The Covid-19 pandemic came on top of the airline's spiraling debts pile, and as the traffic came to a full stop the Icelandic management moved the three Boeing 757 aircraft for storage in the USA - well beyond the reach of the Cabo Verdian state.
   Now, the state is keen to see traffic opening up again as soon as conditions permit, but Loftleidir Cabo Verde would reportedly like to see the state to inject more capital into the venture before taking the aircraft back to the islands.
   Plans for Loftleidir Cabo Verde to take over the next tranche of 39 of the 49 percent still held by the Cabo Verde state were aborted in April 2020 due to the uncertainties around the airline's future in the current coronavirus situation.   
   However, the Icelandair Group seems to be basically unconcerned about its investments in the Cabo Verde project, according to this note in the Group's H1/2020 Interim Financial Statement:
   -The book value of the Group's share in Cabo Verde Airlines has been fully expensed. Reserves have been made against all receivables on TACV and therefore, the Group has no further exposure on TACV.