Air Seychelles spends $20m on three new aircraft

The carrier, in which Etihad Airways has a 40 per cent, is enjoying a revival and needs to keep pace with an increase in domestic traffic.

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SEYCHELLES // Air Seychelles has marked its 35th anniversary with the multimillion dollar purchase of three new aircraft to keep pace with surging domestic traffic.

The deal with the Canadian plane manufacturer Viking Air is the airline's largest ever domestic order and the latest sign of a revival in its fortunes since Etihad Airways purchased a 40 per cent stake in the carrier in January last year.

“This is an investment in our airline and an investment in tourism for Air Seychelles,” said Cramer Ball, the chief executive of Air Seychelles at a press conference yesterday announcing the deal. “This announcement is testament to the success of our turnaround strategy, which has seen an expansion in both our international and domestic services and the synergies derived from working with our equity partner, Etihad Airways.”

Air Seychelles will purchase at a cost of US$20 million three Viking Air DHC-6 Twin Otter Series 400 aircraft, scheduled for delivery for mid-2015. There is an option for earlier delivery if aircraft become available.

Built for short sector flying, the 19-seat twin engine Pratt & Whitney PT6A-34 aircraft will be used for services between Mahé, Seychelles’ main island, and Praslin, and other islands in the archipelago including Bird, Denis and Frégate.

The aircraft will replace the airline’s three Series 300, which have been in service for between 28 and 36 years. It has already operated one Series 400 since 2010.

Underpinning the need for the new aircraft has been the airline’s domestic traffic since the start of the year, up 15 per cent for visitors and 13 per cent for local commuters.

The order is the latest chapter in the airline’s renaissance since Etihad helped to save it from the brink of bankruptcy 18 months ago. So far this year, the carrier has introduced a second Airbus A330-200 aircraft, launched services to Hong Kong, signed codeshare agreements with airberlin, South African Airways and Czech Airlines, and expanded the number of codeshare destinations with Etihad. The airline is also on track for a second consecutive year of profitability.

Next month, it will sign a codeshare agreement with an Asian carrier, said Mr Cramer.

It is also eyeing expanding destinations internationally.

“Within the concept of Africa, we are actively looking at links within Africa and Asia,” said Joel Morgan, the Seychelles minister for home affairs and transport and chairman of Air Seychelles. “We’re also looking at the possibility of going to Europe.”

Etihad’s deal with Air Seychelles involved being awarded a five-year management contract. Formerly Etihad’s regional general manager for Asia Pacific South and Australasia, Mr Ball was seconded to Air Seychelles as part of the contract.

tarnold@thenational.ae