Technical working group to consider options to restructure Air Seychelles’ unsustainable debt |16 June 2021
Transport Minister Antony Derjacques and representatives from his ministry together with the Air Seychelles board members and management gave out presentations at Monday’s extraordinary Cabinet meeting, chaired virtually by President Wavel Ramkalawan.
Taking into consideration the financial impact of Covid-19, reduced flying activities and continued closure of markets across the airline’s network as well as the expected recovery scenarios; as mentioned in Air Seychelles press communique early last week, and upon review of the presentations, the Cabinet of Ministers concluded on the following:
1. A technical working group consisting of experts from the Ministry of Transport, Ministry of Finance, Economic Planning and Trade, the Attorney General’s Office, Air Seychelles and external counsel will be convened and will meet within a week to consider all options related to the restructuring of Air Seychelles’ unsustainable level of debt.
2. The technical working group will recommend the next course of action to Cabinet within the next few months.
3. Cabinet acknowledged the hard work and sacrifices being made by the Air Seychelles staff to generate new revenue and further cost savings, which has to continue.
4. Additional restructuring will continue across the organisation, including revisiting the pay structures.
5. Regrettably some involuntary redundancies of pilots are unavoidable if Air Seychelles is to remain viable. The affected pilots are encouraged to apply to vacancies available at Air Seychelles so that their operating license can be maintained.
6. The government faces acute financial constraints in providing any additional support to Air Seychelles.
The government of Seychelles assures the public it will continue to monitor the performance and role of Air Seychelles in order to meet the needs and best interests of Air Seychelles and its staff, the public in general, and the economy.
Press release from the Ministry of Transport