( 4 minutes read)
· The Financial Stability Committee of the Central Bank of Seychelles is examining financial health of Air Seychelles
· The Committee was set up way back in March 2016 and chaired by the Central Bank nomine periodically to take stock of the financial position of the airlines
· It appears that the committee suggested urgent unbiased steps for shoring the company’s financial viability.
The Financial Stability Committee of the Central Bank of Seychelles is examining the financial health of Air Seychelles. The Committee was set up way back in March 2016 and chaired by the Central Bank nomine periodically to take stock of the financial position of the airlines. It appears that the committee suggested urgent unbiased steps for shoring the company’s financial viability. It may be noted that airlines, across the world, are going through a harrowing experience, leading to groundings, closures and massive bailouts from the government.
Importantly, the Seychelles’ President Wavel Ramkalawan chaired an extraordinary virtual meeting of the Cabinet of Ministers recently where the future of Air Seychelles figured prominently. Subsequently, Airlines had taken a decision to lay off 11 of its pilots four months after the airline announced a voluntary retirement scheme for its older employees.
As to what exactly that has been discussed at the meeting is not clear, but many feel that a massive retrenchment or closure may not be possible given that it might add to the existing woes of the economy, particularly relating to employment. But, it was felt that the airline may have to find resources to float in the present situation by creating revenue flows. The meeting also discussed an update on the performance of the Seychelles with regard to domestic and international developments.
The Indian Ocean Island country largely depends on tourism for its sustenance, which contributes close to 50% to the gross domestic product. Covid-19 had grossly disrupted the tourism industry and livelihood of people. The country reopened its borders to all visitors on March 25 with the aim to re-launch its tourism industry. But the flow of tourists seems to be tardy since the pandemic is still at large in many countries. Travel restrictions further compounded the travelers flow to this Island nation.
