The Angolan government is aiming for 2026 to initiate the long-awaited privatisation process for state-owned TAAG Angola Airlines (DT, Luanda 4 De Fevereiro) and is looking for an international strategic partner that will help reduce operating costs and bolster the airline's global presence, according to Transport Minister Ricardo Viegas d'Abreu.
In the meantime, he said that TAAG would continue with its current restructuring next year, according to Bloomberg. The restructuring forms part of a five-year strategic growth plan to strengthen the airline ahead of the planned privatisation.
Responding to a query from ch-aviation, d'Abreu said the size of the stake to be offered to an international strategic partner was not yet defined but it would be "a relevant stake to ensure further investment in the development of the airline business lines as well as ensure a more sustainable business model". He previously told ch-aviation the government would seek an international partnership for TAAG once the airline's recovery was sustainable.
TAAG has shown signs of recovery, with the first profit in years of AOA460 million kwanzas (USD499,000) recorded in 2022, but its current financial position remains precarious, with an AOA90.1 billion (USD97.7 million) operating loss posted in 2023.
The poor performance was mainly due to increased operating costs, especially AOA138.1 billion (USD149.5 million) in third-party services and AOA16 billion (USD17.3 million) in aircraft leases. A major factor was the rise in the price of JET-A1 fuel and other passenger-related expenses, according to the financial report issued by the Institute for the Management of State Assets and Participation (Instituto de Gestão de Activos e Participações do Estado - IGAPE). The entity oversees the management and privatisation of state-owned enterprises (SOEs) and assets.
Fleet modernisation
The airline's growth strategy includes fleet modernisation. Initially expected around December 17, the arrival of its first B787-9 whitetail has been delayed until February 2025, while the second is expected by May 2025. The delivery of the first B787-10 is expected in February 2025. At the Dubai Air Show in October 2023, TAAG placed an order for four B787s - two -9s and two -10s - on a sale/lease-back basis from Boeing. They will operate initially in parallel with the airline's B777-300ERs. TAAG's current fleet of B777s includes three B777-200ERs and five B777-300ERs, according to ch-aviation fleets data.
In addition, TAAG is modernising its regional fleet with the introduction of the A220-300, the first of which arrived in September and began operations in November. The second and third A220s are expected from the first quarter of 2025. The airline plans to add fifteen A220s, with the first batch leased from Air Lease Corporation. They will gradually replace the airline's ageing fleet of five in-house B737-700s. Their delivery schedule has been impacted by Airbus' production line, problems with Pratt & Whitney PW1500G GTF engines, and the need for pilot and mechanic training on the new type.
TAAG is also finalising business cases to expand its cargo capacity, which would include acquiring a second B737-800(BCF) and possibly a widebody freighter. The airline currently dry-leases a B737-800(BCF) from BBAM.
TAAG began operations at the new Luanda Dr António Agostinho Neto in November 2023, with the complete transfer from the old Luanda 4 De Fevereiro set for completion by the end of March 2025. The Angolan flag carrier plans to launch its first US service, connecting Luanda to Houston Intercontinental, by 2026, pending regulatory approvals.
