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Lusa - Business News - Cabo Verde: government wants way to obligate domestic flights




Praia June.9,2021 (Lusa) - The Cabo Verdean government wants to implement a public service obligation mechanism in domestic air transport on loss-making routes, as provided for in the government programme for the new legislature.

The aim is included in the government programme for the legislature (2021 to 2026), to be presented on Monday in parliament, at a time when TICV (Spanish group Binter), the only airline operating domestic connections, has not operated flights since 16 May, with the executive having awarded an emergency concession for the public service of inter-island passenger air transport to Angolan company BestFly for six months.

"Regarding domestic transport, the government will create the conditions for the adoption of the Public Service Obligation mechanism on certain lines considered structurally loss-making, consolidating the tariff system approved by the government in December 2019, which created the social tariff, flexible tariffs and promotional tariffs and the subsidisation of inter-island flights with stopovers, as is the case of flights to/from São Nicolau," the document reads.

At issue is the fact that on some loss-making connections, without direct flights, passengers have to bear the cost of two air journeys to reach their destination, among other factors.

Also, in the air sector, and with the expected resumption of activity of Cabo Verde Airlines on 18 June, with a flight to Lisbon, after 15 months of suspension of activity due to the Covid-19 pandemic, the government said in the document it is taking to parliament that it will "create the conditions" so that "the project of making Cabo Verde one of the African continent's hubs [that CVA was implementing on Sal island] can be pursued with determination.

"The government will consolidate the process of restructuring, resizing and privatisation of TACV's international activity associated to a strategy anchored in the air and commercial hub of Sal, capable of making the company commercially viable and contributing to increasing the country's economic growth potential," the document reads.

Following the partial privatisation of TACV in March 2019, Cabo Verde Airlines has since been led by Icelandic investors. The Cabo Verdean state maintains a 39% share in the air carrier's shareholder structure.

The government programme also guarantees that "the concession of airport management and the handling service, through strategic partners," respectively currently in charge of state-owned ASA and CV Handling, will be implemented.

"Giving effect to the law approving the legal framework for public service airport concession to support civil aviation, which segregates port operations and air navigation activities and defines the general legal framework for public service airport concessions," the government added.

PVJ/ADB // ADB.

Lusa


Agency : LUSA

Date : 2021-06-10 10:21:00







 

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