Africa-Press – Cape verde. An opinion from the Civil Aviation Agency (AAC) indicates that TACV – Cabo Verde Airlines “does not have the financial capacity” to support its commitments. Taken literally, this means that the national flag carrier does not meet one of the legal requirements for maintaining the air exploration license.
The opinion requested by the ACC administration, consulted by A NAÇÃO, analyzed the 2020 financial statements, as well as the responsibilities and financial commitments not included in TACV’s balance sheet, as well as debt transfers to NewCo, list of State guarantees , supplies, among other various items.
Faced with such a situation, the opinion of the AAC is clear: “we are of the opinion that TACV ‘does not have the financial capacity’ in the analyzed periods”.
In addition to the 2020 financial statements, the “key performance indicators” for the resumption of operations in December 2021 until the end of January 2022 were analyzed. , says the document in front of the accurate picture.
The same document also highlights that the State guarantees granted to TACV-Cabo Verde Airlines, after the covid-19 pandemic, “are conditioned to the operator’s ability to mobilize, generate or release financial resources, under penalty of contractual breaches, or, in the limit, they can be transferred to other public entities”.
According to the conclusions of the same opinion, which fell on the assessment of TACV’s financial capacity – as a requirement for the maintenance, suspension or revocation of the air exploration license – with a negative profitability of 103.13%, the operator “presents a financial imbalance considerable as a function of the values, ratios and operational indicators reflected in the evaluation”.
Therefore, under paragraph 2 of article 8 of Regulatory Decree no. 2/2005, of 11 April, it is difficult to maintain the license granted to TACV in order to maintain its operations.
The same source points out that the values calculated for the working capital of that airline are negative 6 billion contos in 2020 and negative 6.4 billion contos in 2019.
In a short-term perspective, according to the same source, the national air carrier would need these values to develop its activity and balance the difference between current assets and current liabilities.
The opinion also highlights the renegotiation and restructuring in 2020, such as operations under operating leasing, “where there was an 11% reduction in the value of annual spending, however, the unit cost/Block hour of operating leasing grew by 155 % compared to 2019, due to lower production (suspension of commercial activities) and representing more than 50% of total expenditure in 2020”.
From the efficiency indicators, with a negative result of PTE 6.5 billion, and with total sales and services rendered of PTE 6 billion, according to the aforementioned opinion, the company achieved, in 2019, a negative operating profitability in terms of 105.3%.
In practice, if none of this is almost new, taking into account the situation in which TACV has been living, the question that arises is what will the AAC do in the face of the data now gathered, in a hypersensitive sector such as air transport international. Will you apply the law or will you just drag yourself along like this?
Audited financial statements for 2019
In 2019, TACV recorded a deterioration in the debt ratio of around 379%, which prevented the company from meeting its financial commitments through equity. Here is the picture raised by the AAC.
– Total permanent assets PTE 1.6 billion;
– Total current assets PTE 1.1 billion;
– Total current liabilities PTE 7.5 billion;
– Total non-current liabilities PTE 2.8 billion;
– Total permanent capital PTE 4.8 billion;
– Total turnover of PTE 6.1 billion (+75% compared to 2018).
2020 unaudited financial statements
According to TACV’s economic and financial assessment as of December 31, 2020, the company still does not have the financial capacity to honor its commitments. The opinion also noted the existence of a negative ratio arising from the fact that equity is in negative territory, similar to the net result.
– Total permanent assets PTE 289 million (-82.3% compared to 2019), due to the reclassification of permanent assets to current assets;
– Total current assets PTE 1.2 billion (+15% compared to 2019);
– Total current liabilities of PTE 7.5 billion (-3.5% compared to 2019);
– Total negative permanent capital of PTE 5.7 billion;
– Operating revenues of PTE 1.9 billion (-70% of total revenue compared to 2019) motivated by the suspension of commercial operations in March 2020 (covid-19).
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