Air Sénégal Faces €32m Claim, Adding to Financial Woes
Air Sénégal is facing a new financial hurdle as Dakar Aéroport operator LAS (Limak-AIBD-Summa) demands €32 million in unpaid debts. This claim, which includes €15 million in airport fees and €17 million owed to service providers, further complicates the airline's already precarious financial situation. For African travel agents, this development underscores the importance of carefully considering airline reliability when planning itineraries.
This latest financial challenge comes as Air Sénégal grapples with a debt load exceeding €180 million. Despite receiving over €26 million in government support earlier this year, the airline continues to struggle with operational costs and mounting debts. The dispute with LAS adds another layer of complexity to the airline's efforts to stabilize its finances and maintain essential services.
The relationship between Air Sénégal and LAS is complex, reflecting the broader dynamics of airport management and airline operations in Africa. LAS, a joint venture between Turkish firms and the Senegalese state asset manager (AIBD SA), operates Blaise Diagne International Airport (AIBD) under a 25-year concession agreement. As the national carrier, Air Sénégal is a major user of AIBD, and its financial obligations to LAS are substantial.
The €32 million claim by LAS highlights the financial interdependence between airport operators and airlines. Unpaid airport fees and service charges can significantly impact an airport's revenue stream, while airlines rely on the smooth functioning of airport infrastructure to maintain their operations. This delicate balance can be easily disrupted by financial instability, as demonstrated by Air Sénégal’s current predicament.
The Senegalese government is actively involved in addressing Air Sénégal’s financial challenges. The government has initiated a comprehensive review of the airport concession agreement and is working to resolve the airline's outstanding debts. However, the long-term viability of Air Sénégal remains uncertain, and African travel agents should exercise caution when booking flights with the airline.