Air Seychelles to be rescued   By Vidya Gappy   |28 January 2022

Stakeholders have come up with a rescue plan for Air Seychelles

Good news for our national airline – Air Seychelles. It has a rescue plan!

Transport Minister Antony Derjacques yesterday told the press that “the Ministry of Transport with the backing of the Ministry of Finance, Economic Planning and Trade as well as the administrators of Air Seychelles have come up with a rescue plan for the airline which has been accepted by the noteholders and creditors whom Air Seychelles owes US $76 million. So they have agreed to remove 66.66% as a haircut to the original debt of US $76 million, thereby we have saved Air Seychelles US $50 million.”

“In September last year we negotiated a reduction of US $50 million with Etihad, so I am very happy that we have saved over US $100 million dollars for Air Seychelles. What will happen now is that ground handling will continue and we will improve ground handling in the future. Cargo, engineering and other services will continue, while regional flights will have to be restructured,” added Minister Derjacques.

He stated that they are aiming to ensure that ground handling is never endangered again by international flights. “You may know that during the past year I had to go and negotiate with other international ground handling companies that would have helped us in case the negotiation was unsuccessful and Air Seychelles could not maintain ground handling. But we have been successful and I am pleased that all the workers will remain with Air Seychelles and going forward we will include them in the restructuring.”

Minister Derjacques also confirmed that as the debt for the noteholders has reduced by 66.66%, the remaining US $27.8 million will be paid by Air Seychelles with the help of government starting March 31 of this year.

“Air Seychelles is paying the debt by selling some of its assets which would include a sale and lease back of the twin otters. Air Seychelles also owes government but we are ready to forgive the debt when we enter the restructuration of Air Seychelles,” noted Minister Derjacques.

He concluded by commending the staff of Air Seychelles who have accepted the variation in their contract.

“The staff will not be paid the same as in 2019 as they have taken a big cut in their salary. 102 staff have accepted a 30% cut on their salary. I ask for their patience to make Air Seychelles commercially viable. The restructuration will take place in consultation with the staff and we will make sure that our national airline never goes in danger again.”

Vidya Gappy