Cape Verde Approves $3.7M for Airline Fleet Expansion
The Cape Verdean government has approved a $3.7 million (€3.3 million) sovereign guarantee to support the expansion and modernization of its domestic airline fleet, according to an announcement in the country’s Official Gazette.
Boosting Inter-Island Connectivity
The state backing paves the way for the national carrier, Linhas Aéreas de Cabo Verde (LACV), to finalize an operational lease agreement with AVAP Leasing Atlantic for an ATR 72-600 aircraft. The move is a critical component of the airline’s strategic business plan to reinforce its fleet and stabilize inter-island travel.
Government officials emphasized that the primary goal of the investment is to “strengthen the company’s operational capacity” while significantly increasing the “regularity and reliability” of air services across the archipelago. The executive branch justified the guarantee by citing the “public interest” of maintaining a robust transportation network between the islands.
Long-Term Strategy
The sovereign guarantee is set for a period of eight years, which differs from the 12-year term established in the aircraft lease agreement. This financial structure provides a necessary safety net for the airline to secure the modern turboprop aircraft, known for its efficiency on short-haul regional routes.
This acquisition marks only the first phase of a broader fleet overhaul. The government confirmed that a second phase is already in motion, involving a guarantee for a second ATR aircraft slated for early 2027. That expansion will be subject to a separate authorization process in accordance with national law.
As Cape Verde continues to rely on tourism and internal trade, the reinforcement of LACV is seen as a vital step in ensuring the country remains connected and economically resilient.
Image: Pexels – Rafael Minguet Delgado
