Air Seychelles (HM, Mahé) has announced it will end longhaul as well as widebody operations as part of its new strategic transformation plan aimed at ensuring the long-term profitability and sustainability for the airline.
Airline chairman Jean Weeling-Lee said in a press conference in Mahé on January 23 that the plan, which has been approved by Air Seychelles’ Supervisory Board as well as both shareholders, the Seychelles government and Etihad Airways (EY, Abu Dhabi International), would allow the Indian Ocean carrier to remain viable in the face of increased competition for flights to the archipelago.
“The aviation industry is fiercely competitive and will become even more so in 2018 as some of the largest carriers begin flying to Seychelles," he said. "This transformation plan has been designed to restructure the Air Seychelles business to meet the challenges of the future while continuing to deliver strong results for the economy and people of Seychelles."
To reduce the financial impact of such competition, Air Seychelles will further consolidate its international network by suspending its Paris CDG, France, service effective April 24, 2018, and will return its two A330-200s to AerCap. The carrier was already forced to terminate services to new markets such as Düsseldorf (Germany) and Durban King Shaka (South Africa) last year. Seychellois President Danny Faure told the Seychelles News Agency (SNA) last year that their launch had been a "strategic mistake" thus warranting their immediate discontinuation.
Among other changes to its operations, Air Seychelles will also replace its fleet of two A320-200s, leased from Etihad and Thunderbolt Aircraft Lease, with unspecified "Next Generation" aircraft in 2019. This, chief executive Remco Althius said, would allow Air Seychelles to offer greater levels of comfort while increasing seat capacities and reducing operational costs.
Going forward, Air Seychelles will concentrate on developing its domestic operations between Mahé and Praslin as well as regional flights to Mauritius, Johannesburg O.R. Tambo, Abu Dhabi International, and Mumbai International.
“After considering all the options, we have taken the decision to withdraw from both Paris and Antananarivo and refocus on our core strengths – our domestic and regional networks," the executive said. "Doing so will enable us to concentrate on more profitable areas of the business, while people in Seychelles will continue to have non-stop access to France and wider Europe through airlines that can operate at more efficient international scale than Air Seychelles.”
With the curtailing of its route network and capacity, Air Seychelles will effect cabin- and flightcrew cuts. Expatriate pilots are expected to be amongst those affected initially.
“This has been a difficult choice for us to make but it is necessary if Air Seychelles is to continue to serve the people and economy of Seychelles in a way that is both profitable and sustainable,” Althuis added.
Although the exact number of staff to be cut has yet to be announced, over the coming months, an airline management team will cooperate closely with the Supervisory Board, Etihad Airways, and the Government of Seychelles to preserve as many jobs as possible and provide assistance to affected employees.
