Loftleidir Icelandic enters into management agreement in Cabo Verde

Loftleidir Icelandic, a subsidiary of Icelandair Group, TACV Cabo Verde Airlines and the Government of Cabo Verde have decided to enter into a management agreement on the restructuring of TACV Cabo Verde Airlines. The purpose of this initiative is to strengthen Cabo Verde’s national airline and position it as a key strategic asset to contribute to Cabo Verde’s potential as a year-round tourist destination and to develop Cabo Verde’s position as a connecting hub, linking four continents, with a focus on flexibility and competitiveness.

Loftleidir Icelandic, a Global Capacity Solutions provider with extensive worldwide expertise, in co-operation with other subsidiaries of Icelandair Group, will serve as a strategic partner with TACV and the Government of Cabo Verde. The work includes network planning, marketing, sales and distribution planning as well as the restructuring of TACV’s fleet.

Erlendur Svavarsson, Senior Vice President of Marketing and Sales at Loftleidir Icelandic: “We are very pleased with this agreement and look forward to assisting TACV Cabo Verde Airlines in developing further its untapped potential as a key player in the future air hub in Cabo Verde. We believe that TACV Cabo Verde Airlines is in a great position to take advantage of the unique geographical location of Cabo Verde. We will work with TACV Cabo Verde Airlines and the Government of Cabo Verde on restructuring the airline and then positioning it as the centerpiece of the future air hub operation in the country. To this end, we will draw on Icelandair Group’s successful experience in building a hub-and-spoke system to support an air hub operation in Cabo Verde.”

José Gonçalves, the Minister of Economy and Employment, responsible for the air transportation sector: “The Government of Cabo Verde is very pleased to have negotiated this mutually beneficial agreement with Loftleidir Icelandic of the Icelandair Group, leading to the restructuring and privatization of our national airline. We are equally pleased that Loftleidir Icelandic is our preferred strategic partner in this business venture to help Cabo Verde take full advantage of the opportunity to create a successful air hub business in a key geographic location in West Africa. We are very proud that Cabo Verde is in a privileged position as one of the very few countries in Africa to boast four international airports classified as Category 1 by the U.S. FAA and a national airline certified as an IOSA Operator under the IATA Operational Safety Audit Program, which permits our national airline to fly to countries in all continents. TACV Cabo Verde Airlines, a company with almost 60 years of history in air transportation, is indeed very pleased to be associated with Loftleidir Icelandic, a part of the prestigious Icelandair Group in this promising business venture. The two companies have a long-standing relationship, and for decades Icelandair provided ground support to TACV Cabo Verde Airlines at Boston Logan Airport in the U.S. We are confident that the strategic agreement now reached with Loftleidir Icelandic bodes well for the establishment of a successful air hub operation in Cabo Verde at an opportune time, when our tourist industry is growing at a fast pace and air travel is becoming ever more prevalent in an increasingly mobile world.”