The CEO of the airline has stated that it needs to undergo a major restructuring and reduce its workforce by a third to remain viable.
I had a chance to meet the CEO of the biggest Boeing snoozing in Africa in Boston and learn more about him. High fuel prices, taxes, and airport and navigation fees are some of the high costs faced by the flag-carrier in Luanda.
The main costs for operating the airline have to be paid in hard currency, but labor costs are not so high. This is a challenge.
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The CEO of the airline is Rui Carreira.
We are doing everything we can to restructure the company. There are too many employees atTAAG. We estimate that 1,000 staff have to leave the airline. A program has been launched to find investors and privatize part of the company. The government has a plan. The CEO said they are talking with everyone.
Carreira said that the future plans of the organization are being adjusted on a daily basis. He said that every day they have to change strategies to adapt to the new normal. Four aircraft are operating. Carreira said that the Dash 8-400s help to reduce costs.
There are five Boeings, three B777-200s and five B777-300ERs in the remaining fleet. He said that they are not operating all of them.
More than 50% of our fleet is out of commission. Before the COVID-19 outbreak, TAAG was operating 25% to 30% of its capacity. We are not doing well.
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The CEO of the airline is Rui Carreira.
New IFE systems are also necessary as the cabins of the B777-200 fleet have to be retrofit. He said that they are looking to transform one Boeing B777-200 into a freighter version. In 2006 the first B777-200 was delivered.
Small checks on its fleet are what the MRO is about. C-checks will be sent to other MRO facilities.
Luanda's new airport is expected to be finished in 2023. I believe this goal will not be achieved. Carreira said that the airport might open one or two more years later. The current Luanda airport is too small to handle increased passenger traffic.
Although it is one of the larger airlines in Africa, the carrier does not see the need to join a global alliance. The main route for the airline is between Lisbon and Luanda. The market is large enough for two carriers. The route to Porto is temporarily suspended because of the COVID-19 Pandemic. Reduced service to So Paulo is an important intercontinental route. We are looking for new markets in West Africa. Carreira said that they are very optimistic about this.
In 2020, the company transported 300,000 passengers. The carrier served 1.5 million travelers in 2019.
