‘SEYCHELLES AIRLINES’ RECLAIMS NAME BUT HAS UPHILL STRUGGLE AHEAD
(Posted 26th September 2015)
In a landmark ruling has the Seychelles Supreme Court decided in favour of plaintiff Intershore Aviation and ordered the Seychelles Registrar of Companies to restore to them the name of ‘Seychelles Airlines’.
The Registrar had initially granted Intershore Aviation the name in August 2013 but later on – many have suggested as a result of influence peddling and pressure by interested parties – withdrew the name again after the Seychelles Civil Aviation Authority formally objected, leaving the company in a lurch and the application for an air service license stalled. The subsequent cancellation of the name registration by the Registrar then set off several legal battles which ended up at the Supreme Court until the ruling was delivered earlier in the week.
With the name back on the table will the Seychelles Civil Aviation Authority now have to deal with the application for an air service license itself, no longer able to hide behind the name argument, and it will be interesting to see how expeditiously the case will be resolved and what decision the SCAA will make. It is expected that should the application be turned down, or delayed, that yet more court battles may loom.
Meanwhile though has the market development made the task for Intershore Aviation even harder than it was before, as the proposed new airline had eyed nonstop flights to Paris – to where Air Seychelles has since returned after cutting out the stopover in Abu Dhabi – and for instance India, to where the national airline last December also launched direct flights.
With such key markets now literally tied up by a resurgent Air Seychelles, which has prospered since partner Etihad came on board in early 2012, it will provide immense challenges for any newcomer to not only make an impact but operate routes with a high enough loadfactor to make financial ends meet. Air Seychelles now operates state of the art Airbus A330 long haul aircraft as well as Airbus A320 short and medium haul aircraft with significantly lower operating cost than the proposed Boeing B767-300 aircraft the new airline intends to use, or suggested to use when filing their initial application with the SCAA.
Aviation pundits and industry observers will be keenly watching the next steps and in particular keep an eye on the moves by the national airline and its efforts to keep the door shut in key source markets for tourists to the Seychelles. Flights by Air Seychelles are due to start later in the year to additional destinations in China, one of the archipelago’s fastest growing new markets and therefore a potential target also for Seychelles Airlines, which appears set to concentrate on long haul flights rather than going into regional destinations across the islands or on to the African mainland.
‘This is but a step ahead for Mssrs. Boulle and Afif. [Local
lawyer Philippe Boullé is the principal owner of Intershore Aviation while Mr.
Ahmed Afif, a former senior bureaucrat in the Seychelles’ government is the
company CEO – both closely associated with the political opposition in the
Seychelles] They now have to get their licenses from SCAA and then, if successful and ready to launch flights, they have to get designations under existing bilateral air service agreements with the countries they are targeting. They also must now decide what aircraft they plan to source. Since they announced their plans a few years ago has the game changed. Air Seychelles has modern new aircraft and their cooperation with Etihad has brought them huge benefits. If the new airline uses old aircraft they will consume a lot more fuel and need a lot more maintenance. These are all factors with an impact on the bottom line. Air Seychelles is back in Paris, they have added Hong Kong since then and they now fly to Mumbai four times a week. The new airline must find niches because they cannot compete head on with the national airline. That is mainly because of the Etihad element in the equation, they just have too much money allowing them to outsmart local competitors. The new airline will need some great inspiration about their business plan and how to go about business because court ruling or not, they will continue to face many challenges’ said a local source with good insight into the Seychelles aviation scene.
Interesting times ahead no doubt, not only in the aviation industry but the country per se, where according to information at hand Mr. Boullé seems intent to be one of several opposition candidates likely to oppose incumbent President James Alix Michel when in the first half of next year presidential elections are taking place.
