Angola’s TAAG to Privatize by 2026, Seeks Partner

The Angolan government is set to initiate the long-awaited privatization of TAAG Angola Airlines by 2026, aiming to enhance the carrier’s global presence and reduce operational costs. Transport Minister Ricardo Viegas d’Abreu announced that the state-owned airline will seek an international strategic partner to support this transition, according to Bloomberg.

TAAG Angola Airlines, based in Luanda at the 4 De Fevereiro Airport, is currently undergoing a comprehensive restructuring process as part of a five-year strategic growth plan. This restructuring is designed to strengthen the airline ahead of its planned privatization, ensuring it is well-positioned for sustainable growth and competitive performance in the global aviation market.

In the interim, d’Abreu stated that TAAG will continue its restructuring efforts throughout 2025. While the specific stake size offered to potential international partners has not been defined, d’Abreu emphasized that it will be a “relevant stake” to secure further investment. This investment is crucial for developing new business lines and establishing a more sustainable business model for the airline. The government plans to seek a strategic partnership once TAAG’s financial recovery becomes stable.

TAAG has shown signs of financial recovery, reporting its first profit in years with AOA460 million (USD499,000) in 2022. However, the airline faced a challenging year in 2023, posting an operating loss of AOA90.1 billion (USD97.7 million). The losses were primarily driven by increased operating costs, including AOA138.1 billion (USD149.5 million) in third-party services and AOA16 billion (USD17.3 million) in aircraft leases. Rising JET-A1 fuel prices and other passenger-related expenses further strained the airline’s finances, as highlighted in the financial report by the Institute for the Management of State Assets and Participation (IGAPE).

A major component of TAAG’s growth strategy is fleet modernization. The airline plans to introduce new Boeing 787 Dreamliners to its fleet, with the first Boeing 787-9 whitetail delivery delayed until February 2025 and the second expected by May 2025. Additionally, the first Boeing 787-10 is scheduled for delivery in February 2025. In October 2023, TAAG placed an order for four Boeing 787s—two 787-9s and two 787-10s—on a sale/lease-back basis from Boeing. These new aircraft will initially operate alongside the airline’s existing Boeing 777-300ERs, which include three Boeing 777-200ERs and five Boeing 777-300ERs.

Beyond the Dreamliners, TAAG is modernizing its regional fleet with the introduction of the Airbus A220-300. The first A220-300 arrived in September 2024 and began operations in November 2024, with two more expected in early 2025. The airline plans to add fifteen A220s, leased from Air Lease Corporation, to replace its aging fleet of five in-house Boeing 737-700s. Delays in Airbus’ production line, issues with Pratt & Whitney PW1500G GTF engines, and the need for pilot and mechanic training have impacted the delivery schedule.

TAAG is also expanding its cargo capacity, planning to acquire a second Boeing 737-800(BCF) and potentially a widebody freighter. Currently, the airline dry-leases a Boeing 737-800(BCF) from BBAM.

In addition to fleet upgrades, TAAG began operations at the new Luanda Dr. António Agostinho Neto Airport in November 2023, with a complete transfer from the old 4 De Fevereiro Airport expected by March 2025. The airline also aims to launch its first US service, connecting Luanda to Houston Intercontinental Airport by 2026, pending regulatory approvals.

The privatization of TAAG Angola Airlines represents a significant milestone in Angola’s efforts to revitalize its national carrier. By partnering with an international strategic investor, TAAG aims to enhance its operational efficiency, expand its global network, and provide improved services to its passengers. As the airline continues its restructuring and modernization efforts, the anticipated privatization is expected to position TAAG as a stronger and more competitive player in the global aviation industry.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com