Home | News    Thursday 14 June 2007

Sudan part-privatises national carrier in $175 mln deal

separation
increase
decrease
separation
separation

June 13, 2007 (KHARTOUM) — Sudan has sold off a large chunk of its unprofitable national carrier in a deal expected to add an estimated $175 million to state coffers over the next two years, government officials said on Wednesday.

JPEG - 10.4 kb
A Sudan Airways plane

Under the deal signed on Tuesday, Kuwait’s Aref Investment Group will hold a 49 percent stake in Sudan Airways and Sudan’s privately owned Al-Fiha company 21 percent.

The government will retain a 30 percent stake.

"Aref and al-Fiha will pay the government $175 million over two years," Sudan’s finance ministry said on Wednesday.

Aref said it had already paid $56 million.

" Sudan Airways will keep its name and logo and continue to be the national carrier," the airline’s board chairman, Kamal Abdel Latif, said.

A new board of directors, comprising seven members — three Sudanese, three from the Aref Group and one from Al-Fiha — shall be appointed to run the company. The chairman of the board should be Sudanese.

"We believe that the partnership with Sudan Airways will be the most difficult of all our investments in Sudan," said Ali Zumaya, head of Aref, whose investments in the country total around $2 billion. But he added that he was optimistic about the future of the new partnership.

Sudan Airways said they would add a new aircraft to its fleet as early as next month.

Aref has already drawn up a five-year business plan that includes "fleet modernization, expansion of domestic and international routes and recruitment of more employees," Sudan Airways said on its website.

The company also hopes to proceed with plans for an IPO of 25 percent of its shares within the next five years, the finance ministry, which negotiated the deal, said.

U.S. sanctions, imposed on Sudan in 1997 for its alleged support for terrorism, seriously crippled the airline, whose fleet was dominated by U.S.-manufactured Boeings. Most of its pilots and technicians had also been trained on American aircrafts.

The company owns 11 planes, including a Boeing , three Airbus aircraft and five Fokker aircraft (F50), and has reduced the size of its staff by half to about 1,000.

More destinations, especially in the Gulf and Africa, have been added and last year the airline resumed its regular flights to London, its only destination in Europe, after suspending the route for several years, according to the company.

(Reuters)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.



Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Sudan’s Uprising: Dealings with remnants of al-Bashir 2019-04-16 21:14:38 By Mahmoud A. Suleiman From the outset, the people of Sudan who have been demonstrating in their glorious popular rebellion for over four months categorically reject the Reproduction or (...)

Sudan’s third civilian uprising and the fourth military coup i 2019-04-16 13:12:52 The third civilian uprising and the fourth military coup in Sudan history ended up with the downfall of Omar Hassan El Bashir after nearly 30 years in power. By Lul Gatkuoth Gatluak The news (...)

Sudan after ousting President al-Bashir: A coup or popular uprising? 2019-04-14 23:29:07 By Beny Gideon, Esq This policy brief is an analysis of the violent protest motivated by different actors against Sudan’s government which has successfully led to the ousting of President Omer (...)


MORE






Latest Press Releases


South Sudan’s Lafon youth condemn killings of civilians by Pari community 2019-04-03 21:54:29 Press Statement on the Fighting between Pari/ Pacidi and Lotuko/Lokiri on 24/3/2019 Release by The Lafon County Youth Union: We, the Lafon County Youth Union hereby condemn the atrocities and (...)

Joseph Malwal Dong joined the SPLM/A -IO 2019-04-02 08:35:02 SPLM/A (IO) Press Release 1/4/2019 On Hon. Joseph Malwal Dong Joined the SPLM/A (IO) The leadership of the SPLM/A (IO) would like to seize this precious opportunity to announce to members and (...)

Sudan Protests: Investigate the custodial death of three University students 2019-03-13 12:53:14 The African Centre for Justice and Peace Studies (ACJPS) Sudan Protests: Urgent call for investigations into the custodial death of three University students and alleged torture of detainees by (...)


MORE

Copyright © 2003-2019 SudanTribune - All rights reserved.