Emirates signs deal to develop Angolan carrier

Emirates airline is to work with the Republic of Angola to develop a “world class” carrier.

The Dubai airline today signed a Management Concession Agreement* which will see Emirates take a role in the management of TAAG which has the Angolan government as a majority shareholder.
The agreement lays the foundation for both airlines to jointly leverage commercial opportunities in Africa and beyond.
The ten year deal was signed this morning by His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates and Augusto da Silva Tomás, Angola’s Minister of Transport.
This initiative is to further the Republic of Angola’s vision to create a world class Angolan carrier with the support of Emirates.
Analyst Saj Ahmad said: “TAAG Angolan Airlines has been one of the quiet success stories as an airline in Africa and Emirates deal with them boosts their presence in a market that is underserved.
“By taking on a managerial role, Emirates will assist TAAG's expansion plans while allowing them to harness Emirates' disciplined financial management to drive efficiency into the business while revamping their network and fleet.’”
‘This is a great move for both carriers and its likely that this deal will spur development of greater routes in and out of Africa, especially for Emirates.”
As part of the agreement*, Emirates will work closely with the Angolan government and TAAG Linhas Aéreas De Angola to formulate and implement a business plan, provide management support and devise fleet and route network strategies, whilst bringing synergy through the complementary networks. Emirates will not contribute equity under this agreement but appoint four senior managers to work for TAAG Linhas Aéreas De Angola.
Both airlines will also cooperate across a wide range of areas including bilateral code-sharing on cargo and passenger services, participation of customers in both airlines’ frequent flyer programmes and passenger and cargo handling. Emirates has also committed to allocate its resources to staff and crew training on best-in-class business and operational processes and systems.
TAAG Linhas Aéreas De Angola will additionally explore business opportunities with dnata, in particular its passenger and cargo handling, flight catering and travel services. dnata, part of the Emirates Group, is the largest provider of air travel services in the Middle East and employs about 23,000 staff in 38 countries.
Sheikh Ahmed said: “Through this partnership Emirates aims to provide deeper reach and better connectivity for our passengers in Central & South Africa. At the same time, we see an opportunity for TAAG Linhas Aéreas De Angola passengers to benefit from Emirates’ global network.
We see huge potential in Africa, and are keen to continue playing an active role in contributing to its economies. Emirates will continue growing our presence in Africa by opening new routes, increasing flight frequencies, and upgrading aircraft to meet the increasing demand. Exploring mutually beneficial agreements with established carriers such as TAAG Linhas Aéreas De Angola is another key strategy. We believe this new partnership will build on the success that we have seen on our Dubai-Luanda service, and also deliver operational and business synergies for both airlines.”
Angola is Africa’s second largest oil producer with a strong mining sector, and is one of the fastest growing economies in the world, making it an attractive business destination. Emirates’ first point in Africa was Cairo, launched in 1986, and the airline has since grown a strong presence on the African continent, serving 22 passenger destinations today: Abidjan, Accra, Addis Ababa, Cairo, Cape Town, Casablanca, Dakar, Dar el Salaam, Durban, Entebbe, Johannesburg, Khartoum, Lagos, Luanda, Nairobi, Tripoli, Tunis, Harare, Lusaka, Conakry, Algiers and Abuja.