By Shane McGinley
Agreement does not include equity stake in Angolan flag carrier TAAG
Dubai’s Emirates Airline has signed an agreement with the Republic of Angola to manage African flag carrier TAAG Linhas Aéreas De Angola, it was confirmed on Tuesday.
The Management Concession Agreement is subject to approval but the deal will see the Dubai carrier take a role in the management of the Angolan carrier, which the African government is a majority stakeholder in.
This initiative is to further the Republic of Angola’s vision to create a world class Angolan carrier with the support of Emirates. As part of the agreement, Emirates will work closely with the Angolan government and TAAG Linhas Aéreas De Angola.
As part of the agreement, Emirates will not take an equity stake in the Angolan carrier but aims to work with the government “to formulate and implement a business plan, provide management support and devise fleet and route network strategies, whilst bringing synergy through the complementary networks.”
“Through this partnership Emirates aims to provide deeper reach and better connectivity for our passengers in Central and South Africa. At the same time, we see an opportunity for TAAG Linhas Aéreas De Angola passengers to benefit from Emirates’ global network,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Airline.
“We see huge potential in Africa, and are keen to continue playing an active role in contributing to its economies. Emirates will continue growing our presence in Africa by opening new routes, increasing flight frequencies, and upgrading aircraft to meet the increasing demand.
"Exploring mutually beneficial agreements with established carriers such as TAAG Linhas Aéreas De Angola is another key strategy. We believe this new partnership will build on the success that we have seen on our Dubai-Luanda service, and also deliver operational and business synergies for both airlines.”
Augusto da Silva Tomás, the Minister of Transport for Government of Angola said: "The signing of this agreement today marks a very decisive step towards the restructuring of TAAG. With Emirates, our new partner and a leader in the world of civil aviation, equipped with know-how, technology and experience, TAAG is starting a new era of growth and progress which will also positively impact the development of Angola."
Emirates currently serves 22 destinations in Africa since it launched into the continent in 1986. TAAG’s most recent financial results printed in the press show it registered a growth in passenger traffic of 11 percent for the year ending 2012, with 1.1million passengers flown. Revenue rose 22.6 percent to $650 million but it did not give any profit or loss indicators.
Another strategic alliance which allows Angola to maximise it's infrastructure investments and Emirates to reach ever further around the globe.....let's hope for consumers it translates to ever better quality and attractive pricing.