Saturday, 2 March 2019

Icelandair take over Cabo Verde Airlines

Icelandair Group has taken a 51% of the shares of Cabo Verde Airlines and the firm believes there are opportunities to build the company up as a strong hub and spoke airline with Cape Verde as a connecting hub between continents. The group promises that Cabo Verde Airlines will benefit from the experience and knowledge from within Icelandair which has a similar business model.

Loftleidir Icelandic, which is a subsidiary of Icelandair Group, holds a 70% stake in Loftleidir Cabo Verde, and other investors 30%. The acquisition of Cabo Verde Airlines does not have a significant effect on Icelandair Group's financial statements since Cabo Verde Airlines will not be reflected in the Group’s consolidated financial statements. The share will be classified as an associated company.  

The airline said, "Today marks the beginning of the new Cabo Verde Airlines. This is the result of a long process that took time, dedication and, essentially, reliance from the Cape Verdean Government and investors. We are looking towards the future and in making Cabo Verde a point of connection between continents."