The Seychelles islands National Airline- Air Seychelles received a huge boost financially today as it was reported that Etihad had acquired a 40% stake in the National Carrier. It has been reported that Air Seychelles will fly within the next year to new destinations such as Abu Dhabi, Bangkok, Hong Kong, and Beijing. The new routes will also require the acquisition of new aircraft's and it has been stated they will look into new Airbus planes to expand the fleet. The good news for the main markets feeding the Seychelles Tourism Industry is that direct flights from Seychelles to Europe will also be considered again once the airline is in a better financial position.
Below is the official Press Release from the Seychelles Government.
OFFICIAL PRESS RELEASE
January 25, 2012
SEYCHELLES GOVERNMENT AND ETIHAD AIRWAYS TEAM UP IN NEW STRATEGIC PARTNERSHIP IN AIR SEYCHELLES LTD.
The
Government of Seychelles and Etihad Airways, the national airline of
the United Arab Emirates, have signed a Memorandum of Understanding
wherein Etihad will invest to acquire a 40 per cent stake in Air
Seychelles Ltd as part of a strategic partnership alliance initiative
between Air Seychelles and Etihad Airways.
The
deal was announced today by Joel Morgan, Seychelles Minister of Home
Affairs, Environment, Transport and Energy and James Hogan, President
and Chief Executive Officer of Etihad Airways.
Etihad
Airways’ investment of USD 20 million will be matched by an equal
capital injection from the Government of Seychelles. In addition, Etihad
Airways will also provide a shareholder’s loan of USD 25 million to
meet working capital requirements and support network development.
Mr
Morgan said: “This is a game-changing strategic partnership for us,
establishing Air Seychelles on a sustainable growth trajectory and
offering a realistic way forward for long-term commercial growth.”
“The
partnership simultaneously provides international presence, strategic
penetration and a bright future for our national carrier.”
“The
aviation industry is under enormous pressure right now, with small
airlines especially vulnerable to global economic instability and
ongoing oil price volatility. In this context, consolidation offers the
best possible solution for Air Seychelles. This agreement will allow Air
Seychelles to share the benefits of the visionary strategy of one of
the world’s leading airlines and leverage its economies of scale and
synergies.”
Mr
Hogan said: “This deal is consistent with our approach to expansion,
which relies on the strength of strategic partnerships across the
globe. The investment in the national carrier of Seychelles is a
natural next step towards growing our operations in the increasingly
important leisure markets of the Indian Ocean and Africa.
“The
Seychelles is a renowned leisure destination and its tourism industry
is surging, as indicated by record-setting visitor numbers for the
island nation in 2011. There is a need for greater connectivity to
support this tourism boom, and both Air Seychelles and Etihad Airways
are well-positioned to leverage that demand into substantial commercial
growth.
The
integration of the networks will give Air Seychelles greater
opportunity to tap into key tourism feeder markets across Europe – such
as Germany, France, Italy and the UK – where Etihad Airways’ presence is
strong and growing.”
Asia,
and more specifically China, is increasingly important to the
Seychelles national economy. Apart from the Seychelles strategic
geographic significance as a stepping stone between China and Africa,
the island nation is also an important trading partner for Chinese
business and an increasingly popular leisure destination for significant
numbers of Chinese travellers.
The
agreement, which is the first of its kind in Africa, makes for
provision for a five-year management contract for Etihad Airways which
will see the implementation of strategic measures to encourage Air
Seychelles’ long-term commercial growth.
Importantly,
the partnership will offer unprecedented career development
opportunities and access to Etihad Airways state-of-the-art training
academy and facilities in Abu Dhabi for Seychellois aviation
professionals.
Etihad
Airways has achieved a high level of success in encouraging and
facilitating the professional growth and increased presence of nationals
in the organisation following the implementation of its localisation
program, and will support a similar knowledge and skill transfer for
Seychellois within Air Seychelles.
Another
important element of the agreement gives Air Seychelles office presence
in Etihad Airways offices across the Etihad Airways network. This means
vastly improved marketing possibilities for the country and its
national carrier.
Finally,
the new partnership will further drive consolidation of key functions,
resulting in significant cost savings and process optimisation.
Also under the partnership:
- Etihad Airways will seek to increase frequency of flights between Abu Dhabi and Mahé from four per week to daily, as well as providing new services to the islands;
- Etihad Airways will work in conjunction with Air Seychelles to develop a renewed fleet and network growth plan for the island-based carrier;
- The airlines will sign a comprehensive codeshare agreement to include Etihad Airways-marketed flights across Air Seychelles’ network and Air Seychelles-marketed flights to Abu Dhabi and Etihad Airways destinations across Europe, the Middle East, the GCC, Asia and Australia.
- Etihad Guest and Seychelles Bonus, the airlines’ frequent flyer programs, will be integrated to include mileage earning and redemption on each other’s flights.
This
agreement is Etihad Airways’ second equity investment, following its
December 2011 announcement that it would increase its stake in airberlin
to 29.21 per cent, making it the single biggest shareholder in Europe’s
sixth largest airline.
- End -
Chalets d Anse Forbans offers Seychelles Self catering beach bungalows on the main island of Mahe. For your ideal Seychelles Holiday Accommodation book direct with Chalets d' Anse Forbans.
No comments:
Post a Comment