The federal government of the Seychelles has recovered full possession of Air Seychelles following an settlement with Etihad Airways.
The United Arab Emirates flag-carrier had taken a stake within the Indian Ocean airline in 2012 as a part of a wider fairness funding technique.
Now, after months of negotiations, the Seychelles authorities can pay simply US$1 to recuperate the 40 per cent share.
The Center East-based airline has been trying to divest its overseas airline investments within the wake of the Covid-19 pandemic.
Because of the deal, Air Seychelles will now be totally state-owned and plans to restructure its board in June.
Incumbent executives at Air Seychelles, together with chief government Remco Althuis, and Michael Berlouis, chief monetary officer, will stay in place till then.
The brand new board can be led by Nane Nanty as chairperson, with Alan Mason as co-chairman.
Along with relinquishing its stake, Etihad has agreed to chop the debt it’s owed by Air Seychelles by 79 per cent.
Air Seychelles owes Etihad money owed exceeding $72 million, which each events have been negotiating to restructure.
After the lower, Air Seychelles can pay $11 million reasonably than the total $72 million.
The Etihad stake within the Indian Ocean airline was a part of a wider plan to take the Abu Dhabi flag-carrier international.
Nevertheless, years of losses noticed architect of the plan, chief government James Hogan, leave and the gradual dissolution of the technique.
The community of airline investments led to $7 billion in losses over the 5 years ending in 2020.
Alitalia, nonetheless, struggles on in Italy, whereas Etihad diminished its stake in Air Serbia to 18 per cent from 49 per cent in December.
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Air Seychelles has been implementing a metamorphosis plan since 2018 after seeing substantial losses, primarily from flying long-haul routes, in accordance with chief government Althuis.
The airline has since deserted intercontinental markets corresponding to Paris, changed Airbus A330 planes with smaller A320 jets and centered on its regional community.
Discover out extra about Althuis’ plans for the long run in a Breaking Journey Information interview here.