Aviation: Emirates Airline Etihad Buys 40% of Air Seychelles

Air Seychelles can finally take off. It has indeed been taken under the wing of Etihad Airways, the national airline of United Arab Emirates (UAE). A strategic agreement was signed Wednesday, January 25 between Mahé and management of Etihad. The latter, a truck Aviation acquired 40% of the shares of Air Seychelles at a cost of $ 20 million.

The announcement was made by Seychelles Minister of the Interior, Environment, Energy and Transport Joel Morgan and the Chairman and Chief Executive James Hogan UAE firm. The agreement Etihad will invest in Air Seychelles.

The Seychelles government will also inject $ 20 million in the company that has known nothing but gusts of late. It dismissed 19% of its staff earlier this year and had dropped all routes in Europe, merely join Maurice and South Africa.

Air Seychelles was almost on the verge of closing after 29 years of existence. In recent months, she worked only one device, having had to return four of its Boeing. It accumulated huge losses, even after having sunk $ 15 million in government subsidies, equivalent to Rs 450 million, prompting the International Monetary Fund (IMF) to preach to Mahé.

In addition to investing $ 20 million in Air Seychelles, Etihad will move an extra $ 25 million for the company to resume its flight and rebuild its network.

"This agreement will enable Etihad to Mahé a hub for the Indian Ocean and Africa, while Abu Dhabi will be the bridge to the world," welcomes the Mauritian Viyay Poonoosamy, V ice President International & Public Affairs Etihad. The former head of Air Mauritius is also the chairman of the Strategic Committee of the International Air Transport Association (IATA) says that this is the second large-scale participation of Etihad in an airline of another country.There were initially taking action at Air Berlin, the second largest airline after Lufthansa German.

The firm of Abu Dhabi has become the largest shareholder of Air Berlin by offering 29.21% stake last December. She already held 2.99% of its capital and it is going to extend 255 million as a credit line. The agreement also allows Etihad to be part of one of the three global airline alliances, One World, which includes American Airlines, British Airways, Iberia and Qantas.

Etihad, which serves 82 destinations, has 64 wide-bodied Airbus and Boeing together, and carried more than 8 million passengers in 2011. The firm of Abu Dhabi, launched in 2003, was voted Best Airline of the Year 2011 and Best First Class in the world for the third consecutive year at World Travel Market .

"We will support Air Seychelles in different areas. Whether at the level of training and delivery, " welcomes Vijay Poonoosamy reached by telephone in Davos, Switzerland.

Taking action by Etihad in Air Seychelles is not a surprise to observers based in the island. "The cooperation between Abu Dhabi and Seychelles has lasted several years. It is found in various sectors including defense and health among others " said Richard Ramasawmy, the correspondent of Bloomberg Seychelles.

The latter also reported that from 1 February Etihad takes the management of Air Seychelles as part of aManagement Contract . UAE company to appoint a Chief Executive Officer and Chief Financial Ofice .