Etihad Airways bought a 40 per cent stake in Air Seychelles in January. Courtesy of Air Seychelles
Etihad Airways bought a 40 per cent stake in Air Seychelles in January. Courtesy of Air Seychelles
Etihad Airways bought a 40 per cent stake in Air Seychelles in January. Courtesy of Air Seychelles
Etihad Airways bought a 40 per cent stake in Air Seychelles in January. Courtesy of Air Seychelles

Air Seychelles greets new dawn


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It was not the cheer and applause as the Air Seychelles plane landed on home turf that signified the turnaround.

Nor was it the presence of James Michel, the president of the Seychelles, as the Airbus A330 taxied through a ceremonial water cannon salute.

What epitomised the importance of the occasion most for the Seychelles and for the new dawn of its fledgling airline was the moment the cabin crew, so excited and tearful to be home after weeks of training, mistakenly announced on arrival:

"Welcome to the Seychelles, where the local time is 28°C."

The new Airbus A330 was just another aircraft, but for Air Seychelles, its arrival yesterday was the first step in a long turnaround that started in January, when Etihad Airways bought a 40 per cent stake in the government-owned airline for US$20 million (Dh73.4m), beginning a partnership in the Indian Ocean.

"Air Seychelles is a critical part of the fabric of the Seychelles economy," said Cramer Ball, the new chief executive of the company, who was previously the regional general manager for Asia Pacific South and Australasia at Etihad. "The partnership with Etihad moves Air Seychelles from being a regional airline to being a global player."

The airline has retired its Boeing 767 aircraft and is operating the newer Airbus A330 and plans to lease another A330 aircraft by the end of the year.

"As of today, Air Seychelles offers a product that is equal if not better than many of its competitors," said Joel Morgan, the minister of home affairs and transport.

Before the Etihad deal, Air Seychelles was in dire straits, cancelling many of its routes to Europe and requiring a cash injection from the Seychellois government of 125 million rupees (Dh31.9m) to meet operating costs and 255m rupees in loans. Before the global financial crisis of 2008 and rising fuel costs, Air Seychelles had been a profitable airline since 1983.

"They were operating in their own right and business was tough," said Mr Ball. "They did not have the economies of scale that the business has now."

The staff have been fully retrained in Abu Dhabi, a new route to Beijing is to be opened next year and the airline has access to Etihad's 82 destinations in 54 countries worldwide. There will be four flights that run between Abu Dhabi and the Seychelles each week on the national carrier, in addition to four flights operated by Etihad.

Mr Cramer is making no promises but hopes to return the airline to profitability by the end of the year. However, the declared road map is for profitability in two years.

"Tourism is the number one pillar for the Seychelles and the airline is an integral part of that," said Mr Ball. "What you have seen today is how much of an integral part the airline is.

"There's a vibrancy about the airline now and the mood has changed."

Air Seychelles has been restructured, with the original staff of just over 800 downsized to just under 700. Some have been made redundant, some have retired and some have been offered jobs at Etihad.

"We have offered quite a few people opportunities with Etihad," said Mr Ball. "We have moved fast."

Air Seychelles now plans to work with all stakeholders in the tourism industry, including hotels and the tourism board, to raise the global profile and brand of the island nation and offer affordable weekend package holidays from the Arabian Gulf.