Air Seychelles faces increased fees to Heathrow

THE national carrier faces increased landing fees next year following the decision of the British government to authorise the airport operator (BAA) of Heathrow to increase landing fees of up to £10 per passenger in 2009. But airline companies said the fees would lead to higher ticket prices with passengers left paying more to finance the huge debts incurred by the Spanish purchaser of BAA.

No doubt Air Seychelles will pass on the increase to its passengers, thereby making it less competitive to its rivals Emirates and Qatar Airways on the UK route. The management is bracing for a massive loss on its balance sheet for the financial year ending 31 March 2008, as a result of the accident at Paris Charles de Gaul airport just before Christmas which CEO David Savy said would cost the airline up to €10 million. Net profit in 2007 was €4.5 million

Meanwhile, here in Seychelles, the position of David Savy on the board of the Civil Aviation Authority, which regulates airlines in Seychelles, seriously compromises the independence of the authority which has to approve the air worthiness of the aircraft which suffered substantial damage to its fuselage.

Savy has now relinquished responsibility as CEO of the airline in favour of his favourite employee, the Mauritian Rajiv Bessessur but remains Chairman of the state owned national carrier. When he was Chairman and CEO, David Savy earned €63,000 according to the airline's Annual Report for 2006-07. Presumably his salary remained the same in 2007-08 although he took a €4,000 reduction over 2005-06. The question now is whether Savy will pay himself the same salary with less responsibility. Savy also earns a full salary form the SPDF where he holds the rank of Colonel.

What will the salary of the new CEO of Air Seychelles be? Whose decision it was to separate the two posts? What responsibilities are to be shared? Who will be the dog and who will be the tail?

Mr Bessessur, who holds a PhD in Air Transport, joined Air Seychelles as manager of corporate strategy straight from university in the UK. Just how he got the job, which was never advertised in Seychelles, is a mystery. There is speculation that it was at the recommendation of Ramakrishna Sithanen, the current Vice-Prime Minister and Minister of Finance of Mauritius. Before returning to politics in Mauritius Sithanen was employed as a consultant with Air Seychelles and spent many weeks advising the management of the national airline here in Seychelles whilst staying at a hotel at the airline's expense

 Just why Air Mauritius did not see fit to use his knowledge remains in the realm of speculation.

March 21, 2008
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles