To overcome the isolation imposed by geography on the country and its inhabitants, air transportation has always played a critical role in providing connectivity among the country’s islands and from the archipelago to the rest of the world.76 In the face of the recent tourism boom, air transportation is playing a growing role in the economy. As a result, the government has systematically channeled significant financial and human resources to the aeronautical sector.77
Air transportation, domestic and international, is offered by Cabo Verde Airlines (TACV)––with a fleet of 5 aircrafts. Even though the government decided to privatize the company several years ago, TACV continues to be state owned. The process has been lengthy and has stalled several times for various reasons. The conclusion of the privatization process is expected in 2008. According to the Transports Strategy Report, while international flights are break-even flights, interisland flights are nonprofitable.
TACV’s passengers and seats per km have increased steadily since 2000. However, as the seats per km increased much faster than passenger per km, the cabin factor decreased (passenger/seat ratio) sharply in 2002. It increased in 2005. From 2002 to 2004, cabin factor averaged 62 below what is usually assumed for large carriers: 70 percent.78 This apparent excess of capacity suggests that the company may be using oversized aircraft for a given demand, or that some routes do not have enough demand.79
The privately owned airline, Cabo Verde Express (CVE) provides inter-island charter services for tourists.80 CVE transports tourists who wish to complement their sun and sea vacations with a visit to the archipelago’s other islands. Halycon Air will be the new local carrier that will provide inter-island air transportation (pending its certification by the Civil Aviation Agency). Halycon Air will be a direct competitor to TACV.
