MIAMI – Cabo Verde Airlines (VR) is reportedly set for privatization as the Cabo Verde government is set to sell the remaining 39% stake it has in the airline, according to ch-aviation.
The government is anxious to sell off the stake in the airline due to an International Monetary Fund (IMF) review while staying in line with a national development plan, Cabo Verde Ambition 2030.
The carrier prevented governmental budgetary streamlining amid the COVID-19 pandemic, requiring five state-backed loans since November of last year.
51% of VR is owned by Lofteidir Cabo Verde, a joint venture with Icelandair (FI) and Lofteidir Icelandic, with another 10% belonging to employees and expatriates from Cabo Verde.
The remaining stake in the airline is set to be sold via a stock offering, the broader privatization plan includes privatizing Cabo Verde Handling and granting a contract for airport management.
Cabo Verde to the World
Having to briefly halt operations amid the pandemic, VR serves as the bridge between Cabo Verde and the world, operating out of the Amílcar Cabral International Airport (SID) on the island of Sal.
The airlines offers service across four continents, with flights to Boston (BOS) and Washington D.C. (IAD) in North America, Recife (REC) and Fortaleza (FOR) in South America, Lisbon (LIS), Paris (CDG), and Rome (FCO) among others in Europe, and Dakar (DSS) along with Lagos (LOS) among others in Africa.
The airline currently operates a fleet consisting of 3 Boeing 757-200 aircraft leased from FI along with one Boeing 737-300 aircraft.
With both pent-up tourist demand and a global diaspora likely ready to travel to Cabo Verde to visit family, VR could benefit by becoming more competitive via privatization and be set to prosper from a potential post-COVID-19 travel uptick.
Featured image: Cabo Verde Airlines Boeing 757-236 with registration D4-CCF Photo: Alberto Cucini/Airways