Friday 11 March 2011

SNP Leader To Ask on Air Seychelles Future

SNP Leader Wavel Ramkalawan is calling for the Government to clarify the situation regarding Air Seychelles. In a Private Notice Question (PNQ) to Vice-President Danny Faure as Minister of Finance, Mr. Ramkalawan will ask about the financial situation of the airline and future plans.

The questions will come at a time of mounting concern for the future of the airline. The recent management changes, in particular the sudden departure of Captain David Savy who has been in total control of the company for a dozen years, has shown that a drastic shake-up in underway. Savy’s departure has caused further speculation about what exactly was happening with the airline.

The PNQ, if it is not prevented by Speaker Patrick Herminie, should come up in the National Assembly next Tuesday and will help to shed light on the subject.

The commercial environment for Air Seychelles has been changing dramatically and took a further turn last week. Emirates Airlines announced that it was moving to two daily flights to Seychelles, a full total of 14 weekly. At the same time, Qatar Airways will also increase frequency to 7 per week.

The competition from these airlines is one of the main factors pressing on Air Seychelles. How the national airline will adjust to the intense competition is a question that should be taxing all those concerned.

This week, it has also been revealed that Air Seychelles is taking R75 million in loans from Nouvobanq to support recurrent and working capital requirements. It is also understood that the airline has been assisted directly by the Ministry of Finance last year, for a sum of R125 million.

In the background are other big questions about a possible strategic partnership with another airline which raises questions of job security for the personnel. Also looming is the fate of ground handling operations at Seychelles airport, a valuable source of income for Air Seychelles which has been subject to plans for passing to a foreign company. This week, Regar learned that of a possible deal to sell off some assets of the company’s domestic fleet to a private company, which would signal changes there as well. These are matters that badly need a public airing. 

The future of our national airline is one that every Seychellois should be concerned about. The SNP, for its part, is concerned that the Government should not take any hasty moves that further jeopardise the viability of the airlines.

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