Praia, Oct. 1, 2026 (Lusa) - Cabo Verde's government has granted a sovereign guarantee (state guarantee) to an inter-island airline for $3.7 million (€3.3 million), the government announced in the Official Gazette.

«As part of its business plan and strategy to strengthen its fleet, Linhas Aéreas de Cabo Verde (LACV) has concluded negotiations with AVAP Leasing Atlantic to enter into operating lease agreements for an ATR 72-600 aircraft,» it explained.

The aim is «to strengthen the airline's operational capacity and increase the regularity and reliability of its services».

The transaction's completion depends on a State guarantee, which the government has authorised, taking into account the operation's «public interest».

The state guarantee is granted for a term of eight years and «is distinct» from the 12-year term set out in the relevant aircraft lease agreement, the statement added.

In a second phase, the government will grant a guarantee for another ATR scheduled for early 2027, «with the issue of the guarantee being subject to authorisation in accordance with the law», the resolution concluded.

LFO/ADB // ADB.

Lusa