TAAG needs state capitalization of more than 950 million dollars

The fully public national air carrier TAAG needs a state capitalization of 952 million dollars to face the accumulated losses in recent years, announced the company's management.

The information was provided this Tuesday, in Luanda, by the chairman of the Board of Directors of TAAG, José Kuvíndua, when presenting the strategic plan of the flag company for the period 2018/2022 during a seminar promoted by the Ministry of Transport.

The concern of TAAG's management is exacerbated by the need to repay loans contracted for the acquisition, since 2015, of three new aircraft, as well as planned engine and maintenance overhauls.

For this reason, José Kuvíndua stressed the importance of the timely receipt of the fuel subsidy granted by the State, as well as a new capital injection of at least 150 million dollars immediately, to eliminate or reduce the deficit arising from from previous losses.

In the first half of 2017 alone, TAAG recorded a net loss of 12 million dollars, more than double the negative balance of the entire year of 2016, but due to debts from 2010.

The state-owned company previously mentioned that the unaudited financial results for the first six months of 2017 still registered "some improvements", despite the loss for the semester compared with the five million dollars for the whole year. previous.

"This level of performance is much better if we have to compare it with historical losses of more than 150 million dollars in some years", says the company, which until July 10, 2017 was managed (since the end of 2015, by contract grant), by the Arabs of Emirates, with the British Peter Hill as chairman of the Board of Directors.

The company explained the worsening in the accounts with the realization of a total provision of more than 20 million dollars in the first six months, related to "unpaid tax liabilities in stops abroad, referring to the year 2010".


"If it weren't for the reduction in the fuel subsidy and the provision for tax liabilities, the company would have been profitable. The loss is further compounded by the fact that TAAG has to supply its aircraft with the maximum fuel allowed in Luanda , where it is more expensive, in the impossibility of being able to do it in the stops abroad, where the fuel is cheaper, due to the scarcity of foreign exchange", acknowledged the company.

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