Air Seychelles is now fully owned by the Government of Seychelles
May 07, 2021
The Government of Seychelles has gained full ownership of the national airline, Air Seychelles, following negotiations with the airline’s strategic partner, Etihad Airways.
Etihad Airways sold back its 40% shareholding in the national airline to the Government of Seychelles, at a cost of US$1.
As part of the transfer deal, the Government is taking over all the Etihad liabilities of Air Seychelles.
The Government has also negotiated a 79% reduction in loans that the national carrier owed Etihad.
Repayment of the remaining $11 million will start next year.
Speaking to the local press this afternoon, the Secretary of State in the Ministry of Finance, Economic Planning and Trade, Patrick Payet explained that by taking over all the existing liabilities of Air Seychelles, the Government is giving the airline a clean slate.
“The Government will not be injecting any other additional sum in the airline, as of next year. This year it is only providing salary support, come 2022, no more money from the national budget will be injected into Air Seychelles.”
The agreement was signed on behalf by the Government by the Ministry of Finance, Economic Planning and Trade and Ministry of Transport.
The final paper works are taking place for the official transfer of the shares back to the Government of Seychelles.
Currently negotiations with the bondholders which Air Seychelles owes $71 million are still ongoing.
The Seychelles Government is making an offer of $20 million to the bondholders.
SS Payet made it clear that the Government is not willing to make any higher offer to the bondholders.
“The bondholders need to understand that the proposal of $20 million is the final offer the Government is making to them, we cannot go any higher.”
SS Payet said the Government will be negotiating a loan from the Trade and Development Bank to pay the bondholders if they agree to take the offer.
In the meantime, a new Board of Directors for Air Seychelles has been appointed, task with revamping the airline.
