Air Seychelles Europe flights not profitable, said the Minister for Transport, Ports and Civil Aviation, Veronique Laporte, in the National Assembly on Wednesday 25 March. She spoke while answering an urgent question from the Leader of the Opposition, Bernard Georges, on the impact of the Gulf conflict on transport and the economy.
Mr Georges asked the minister to outline the situation following the war in the Gulf, the closure of the Strait of Hormuz, and airline disruptions affecting Seychelles. He also asked about the short-term and long-term impact on the economy.
In response, Minister Laporte said the government activated a national preparedness framework at the start of the conflict. She said the framework involves multiple sectors.
She said the situation has affected fuel prices, especially jet fuel used in aviation. As a result, Air Seychelles has faced pressure on routes including Colombo, Paris and Mauritius.
Minister Laporte also addressed the maritime sector. She said container shipping operators have delayed deliveries because they must divert transhipment routes.
“As a small country, we must understand that even if the crisis is happening far from us, all Seychellois need to appreciate its significant impact on Seychelles,” said Minister Laporte.
She said the government is identifying measures to manage risks if the situation continues. She added that mitigation plans are in place.
Minister Laporte said air connectivity has reduced. However, flights have not stopped completely. She said Seychelles usually handles about 11 flights per day, but this has dropped to between six and seven. She confirmed this affects tourism.
“Definitely lower aircraft coming in translates into lower tourism,” she said.
She said her ministry has held discussions with several airlines, including Gulf carriers. At the same time, she said Air Seychelles is operating to fill gaps. She added that Ethiopian Airlines has increased its connectivity to Seychelles.
However, she said there is no indication of long-term effects on the national airline at this stage.
On operations, Minister Laporte confirmed that Air Seychelles is not making a profit on certain routes. She said aircraft, crew, maintenance and insurance costs make operations unsustainable.
She said the airline must lease another aircraft to maintain some routes. She added that this is necessary to support the tourism industry. She also confirmed that discussions are ongoing with the Ministry of Finance to address the financial impact.