Angola’s government wants to privatize TAAG by 2025

State-owned TAAG Angola Airlines is preparing to be privatized before 2025, according to its CEO, Eduardo Fairen, in an interview with Agencia EFE.

Ads

The Angolan government’s idea is for the process to be completed before January of that year, when the country will join the Single African Air Transport Market (SAATM). However, so far no formal process has been initiated and no talks with potential bidders have taken place.

There are only expressions of interest from some companies that wish to acquire part of the capital. The national administration, however, maintains its objective of completing the privatization before the liberalization of the entire airline market in the southwest African country.

In practice, TAAG already operates under conditions similar to those of private airlines. It does not have, for example, any privileges related to the purchase of fuel, despite the fact that Angola is a major oil producer and a large part of the state’s income comes from crude oil exports.

The government assures that it must «catch up and compete like any other company in the area».

Ads

In 2020, the Ministry of Transportation had communicated that privatization should be completed in 2022. At that time it was preparing to begin a restructuring process divided into two stages: a first part aimed at cleaning up the company’s economy and a second focused on its recapitalization.

Although the initial deadlines were not met, the company mantains plans to expand and modernize its fleet. As of June 27th, it will offer services between Luanda (LAD) and Madrid-Barajas (MAD). Thus, Spain will become the second European country served by the airline after Portugal, with which Angola has strong historical and cultural ties.

According to reports, the company would be interested in incorporating between six and ten single-aisle aircraft and six wide-body aircraft to replace the oldest ones in the fleet, which would be converted into freighters.

See also: TAAG Angola and Iberia sign code-share and interline agreement