Cabo Verde Airlines (CVA) announced the indefinite suspension, from March 1, of the route between the island of Sal and Salvador da Bahia, in Brazil, justified restructuring with new destinations.
In a statement sent to Lusa, the Cape Verdean company, privatized in March 2019 and which succeeded the state-owned Transportes Aéreos de Cabo Verde (TACV), said that “due to the expansion and launch of new destinations in 2020 for Europe and Africa »Decided to« restructure air routes, indefinitely suspending the Salvador da Bahia-Sal and Sal-Salvador da Bahia route ».
In March 2019, the State of Cape Verde sold 51% of the then public company TACV for 1.3 million euros to Lofleidir Cabo Verde, a company 70% owned by Loftleidir Icelandic EHF (which held 36% of CVA) and in 30% by Icelandic entrepreneurs with experience in the aviation sector, who took over the remaining 15% of the 51% privatized share.
The company guarantees connections from the Cape Verde archipelago, with the ‘hub’ installed on the island of Sal, to Dakar, Lisbon, Paris, Milan, Rome, Boston, Washington, Lagos, in addition to the four current destinations in Brazil, Fortaleza, Recife, Salvador and Porto Alegre.
New routes to Toronto (Canada) and Porto (Portugal) were hypotheses recently admitted by the airline led since this month by Erlendur Svavarsson, who succeeds Jens Bjarnason, president of the CVA since last year.
million) and expenses of $ 1.1 million (one million euros) in 2019.
The Cape Verdean Government is in the process of selling 10% of CVA shares to workers and emigrants and the remaining 39% by other investors, through the stock exchange.
Cabo Verde Airlines increased to almost 200,000 passengers transported in the first eight months after the privatization process.
The figures were advanced in December to the Lusa agency by an official source of the Cape Verdean airline and translate into an increase of 85.4% in the total number of passengers transported, compared to the same period in 2018.
«CVA is looking for long-term financing. If long-term financing is not guaranteed, this could adversely affect the operation ”, reads the Icelandair group report, which identifies revenues from the Cape Verde company in the amount of 34 million euros and expenses of one million, in 2019.