Cape Verde Islands to subsidize low-density domestic routes

The government of the Cape Verde Islands, located approximately 500 km off the coast of Senegal, has agreed to begin subsidizing low-density, domestic inter-island flights currently operated by TACV - Cabo Verde Airlines (VR, Praia).

Citing their strategic nature, the government said it would assist the loss-making carrier in covering the cost of operating the routes.

According to the ch-aviation route database, TACV offers scheduled domestic flights on a network including Sal, São Filipe, São Nicolau, São Vicente, Vila do Maio, Boa Vista Rabil Int'l, and Praia using its fleet of one ATR42-500 and two ATR72-500s.

TACV is in the midst of a restructuring programme with its owner, the state, currently assisting it with relief financing to help sustain operations while it seeks outside investment.

Airline CEO Joao Pereira Silva told Reuters earlier this year that as part of cost-cutting measures, TACV expects to lay-off 120 of its current 510-strong workforce by December of this year.

"We have some potential ... with our strategic location to attract investors if we restructure the company and bring costs to appropriate levels," he said.