The Cape Verdean government announced that Icelandair was selected as its strategic partner in the privatization of Cabo Verde Airlines.

Both parties will now enter into talks for the acquisition of up to 51% of the capital of the Cape Verdean airline, with the remaining 49% to be sold to other investors, mainly diaspora.

The valuation of Cape Verde Airlines was not disclosed.

Should the proposal fall through, the government plans to eventually proceed with a new strategic partner.