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Jun 24, 2021 (newstodate): Today majority-owned by the Icelandic subsidiary Loftleidir Cabo Verde, Cabo Verde Airlines may soon be returned to state ownership.
After a prolonged political strife between the Icelandic management and the government of Cabo Verde, the Cape Verde government has announced the re-nationalization of Cabo Verde Airline.
In an interview with local media, the prime minister of Cabo Verde says that the Icelandic investor had not demonstrated the ability to ensure the company's sustainability - and it would also be in the interests of the people of Cape Verde to nationalize the airline again.
All flights in Cabo Verde have been suspended since April 19, 2020, and after more than a year stuck on the ground due to Covid-19, debts, financing, issues with unions, and political turmoil, the carrier announced resumption of flights this month, with the first operation from Sal Airport to Lisbon on June 18, 2021.
This did not happen, though; the aircraft was denied clearance, leaving its four passengers grounded as well.
In 2017, Loftleidir Icelandic, TACV Cabo Verde Airlines and the Government of Cabo Verde inked a management agreement on the restructuring of the loss-making TACV Cabo Verde Airlines, and in March 2019, Loftleidir Cabo Verde, owned 70 percent by Loftleidir Icelandic ehf, and 30 percent by Icelandic investors, acquired 51 percent of Cabo Verde Airlines.
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.
And now the end seems to be near to the Icelandic aviation adventure in Cab Verde.
After a prolonged political strife between the Icelandic management and the government of Cabo Verde, the Cape Verde government has announced the re-nationalization of Cabo Verde Airline.
In an interview with local media, the prime minister of Cabo Verde says that the Icelandic investor had not demonstrated the ability to ensure the company's sustainability - and it would also be in the interests of the people of Cape Verde to nationalize the airline again.
All flights in Cabo Verde have been suspended since April 19, 2020, and after more than a year stuck on the ground due to Covid-19, debts, financing, issues with unions, and political turmoil, the carrier announced resumption of flights this month, with the first operation from Sal Airport to Lisbon on June 18, 2021.
This did not happen, though; the aircraft was denied clearance, leaving its four passengers grounded as well.
In 2017, Loftleidir Icelandic, TACV Cabo Verde Airlines and the Government of Cabo Verde inked a management agreement on the restructuring of the loss-making TACV Cabo Verde Airlines, and in March 2019, Loftleidir Cabo Verde, owned 70 percent by Loftleidir Icelandic ehf, and 30 percent by Icelandic investors, acquired 51 percent of Cabo Verde Airlines.
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.
And now the end seems to be near to the Icelandic aviation adventure in Cab Verde.