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asuflyer
Topic Author
Posts: 759
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Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Wed Jun 30, 2021 1:52 am

In a bizarre move, the Cape Verdean government has ordered Cabo Verde Airlines to be renationalized and has seized a Cabo Verde Airlines 757, registration D4-CCG at SID which is leased from Loftleidir Icelandic/Icelandair. The government accuses Loftleidir of not upholding their 51% part of the ownership and said the airline did not best serve the Cape Verdean public. A strange move as under TACV, the previous state-run airline before Cabo Verde Airlines, the airline consistently lost money and was mismanaged.

Source in Portuguese

https://www.rfi.fr/pt/cabo-verde/202106 ... %A7%C3%A3o
 
Galwayman
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Wed Jun 30, 2021 10:54 am

Hardly bizarre in these challenging times. All airlines are losing money and governments everywhere are rightly protecting strategic assets
 
ScottB
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Wed Jun 30, 2021 4:53 pm

Galwayman wrote:
Hardly bizarre in these challenging times. All airlines are losing money and governments everywhere are rightly protecting strategic assets


Except the plane doesn't belong to either the renationalized airline or the government -- it's leased. The airline wouldn't be able to use the plane more than once to fly anywhere outside the country; the lessor, Loftleidir, would have the aircraft seized immediately at its destination.
 
prebennorholm
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Wed Jun 30, 2021 11:12 pm

A 31yr old 757 (line no. 281), having served Icelandair for many years, and in between been leased to Britain, France, Papua New Guinea, Venezuela, Colombia, Gabon, and now Cape Verde.

Must be a very tired old lady. If she gets put aside for years to rotten away while the lawyers are sorting out the mess, then the accident is limited.

Nothing is so bad that it isn't good for something. This incident has the potential to become very lucretive for a minor army of lawyers.
 
davidjohnson6
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Thu Jul 01, 2021 12:12 am

What's the residual value of a 31 year old 757 ? It seems to be doing 30 minute hops between Cape Verde's islands - probably somewhat demanding on the frame

Sounds like Icelandair deliberately picked an aircraft that would otherwise go to the scrapyard pretty soon because they knew something might go wrong with this joint venture
 
WayexTDI
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Thu Jul 01, 2021 12:34 am

ScottB wrote:
Galwayman wrote:
Hardly bizarre in these challenging times. All airlines are losing money and governments everywhere are rightly protecting strategic assets


Except the plane doesn't belong to either the renationalized airline or the government -- it's leased. The airline wouldn't be able to use the plane more than once to fly anywhere outside the country; the lessor, Loftleidir, would have the aircraft seized immediately at its destination.

Who's in the right? OP stated that "[t]he government accuses Loftleidir of not upholding their 51% part of the ownership"; so, if the lessor is defaulting on its agreement, then the government might have a good case to seize their asset and force them to comply.
 
prebennorholm
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Thu Jul 01, 2021 1:31 am

davidjohnson6 wrote:
It seems to be doing 30 minute hops between Cape Verde's islands - probably somewhat demanding on the frame

Nah, their island hopping is done with ATRs and Let L-410s. This 757 is for international traffic.
 
hpff
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Thu Jul 01, 2021 1:36 am

It appears from the article Loftleidir owns 51% of the airline, not necessarily of the plane, and the government wants to re-nationalise.
 
DUSdude
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Thu Jul 01, 2021 3:49 am

prebennorholm wrote:
Nothing is so bad that it isn't good for something. This incident has the potential to become very lucretive for a minor army of lawyers.


Stop gratuitously beating up on lawyers. Having been through a few aircraft repossessions, I can tell you it isn't anywhere near as exciting for the lawyers as you think. Depending on where the aircraft is when the lessor wishes to seize it, there would maybe be a court filing to seize the aircraft using fairly simple form documents. If the location is in a country that is a signatory to Cape Town, no lawyers might be involved at all and the lessor's representatives may simply present documents to the relevant airport authority and take the aircraft. In any case, there isn't much money to be made for lawyers here. Lawyers make big money putting big transactions together or conducting large lawsuits where big amounts are at stake. Repossessions of decades old aircraft with little residual value are much more work for the lessor's technical representatives than for any lawyer.
 
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scbriml
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Thu Jul 01, 2021 8:37 am

prebennorholm wrote:
davidjohnson6 wrote:
It seems to be doing 30 minute hops between Cape Verde's islands - probably somewhat demanding on the frame

Nah, their island hopping is done with ATRs and Let L-410s. This 757 is for international traffic.


A quick look at FR24 shows that all this frame has done since April is intra-island flights.
 
RoyalBrunei757
Posts: 533
Joined: Mon Apr 12, 2021 6:18 am

Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Sat Jul 10, 2021 6:25 am

Some update on Cabo Verde airline: Cape Verde Renationalised Its Airline

https://www.air-journal.fr/2021-07-09-c ... 29056.html

Rough translation from Google Translate:

The airline Cabo Verde Arilines (ex-TACV) will finally return to the fold of the state of Cape Verde, two years after a takeover by the Icelandair group.

Riddled with debt, the national company of Cape Verde sold in March 2019 51% of its capital to Loftleidir Cabo Verde, 70% controlled by Lotfleidir Icelandic, itself a subsidiary of the group of the Icelandic national company, which had already taken over operations. international at Sal-Amilcar Cabral airport. But the deterioration of relations with the shareholder ended without much surprise with the opposite decision: the State announced on July 6 that it had bought back all the shares in question, which are added to the 39% of the capital already held, a decision announced at the end of June (the remaining 10% is held by the employees).
 
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Aesma
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Sat Jul 10, 2021 10:29 am

There is no tourism currently so basically no money. If wonder how much they paid, if anything, for buying back the shares. It seems that is also headed to court, since it was done unilaterally.
 
vfw614
Posts: 4028
Joined: Mon Dec 10, 2001 12:34 am

Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Mon Jul 12, 2021 3:26 pm

scbriml wrote:
prebennorholm wrote:
davidjohnson6 wrote:
It seems to be doing 30 minute hops between Cape Verde's islands - probably somewhat demanding on the frame

Nah, their island hopping is done with ATRs and Let L-410s. This 757 is for international traffic.


A quick look at FR24 shows that all this frame has done since April is intra-island flights.


As I assume that there is still VFR-traffic to/from Cabo Verde to Europe and the US, probably this has more to do with avoiding impoundment somewhere abroad at the behest of Loftleidir than a lack of international flights to the islands - is TAP currently serving Cabo Verde?
 
efpmeneses
Posts: 62
Joined: Sat Mar 29, 2014 12:39 pm

Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Mon Jul 12, 2021 3:54 pm

Yes, TAP is flying to Cape Verde. More than daily to Praia, 5-6x/week to sal and 5-6x/week to São Vicente.

Domestic flights in Cape Verde are operated with ATR aircraft by other airline...

Let aircrafts aren't used for domestic flights, for some years...

Enviado do meu ASUS_I01WD através do Tapatalk
 
bennett123
Posts: 10865
Joined: Sun Aug 15, 2004 12:49 am

Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Mon Jul 12, 2021 4:02 pm

Now they have this aircraft, where can they fly it to with Loftleidir going to court and having it impounded again?.
 
Someone83
Posts: 5392
Joined: Sun Sep 17, 2006 5:47 pm

Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Mon Jul 12, 2021 4:16 pm

Not sure if Loftleidir/Icelandair was ever going to make money on this adventure. So could be it wasn’t that bad to get tid og the airline
 
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GlobalAirways
Posts: 96
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Re: Cape Verde Gov't seizes Cabo Verde Airlines 757 in dispute with Loftleidir Icelandic

Mon Jul 12, 2021 5:19 pm

Pretty old frame, who knows, maybe parts for other planes. This move could hurt them from acquiring other planes in the future.

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