Seychelles loses out - After Virgin Atlantic and Transaero fly to Mauritius
After the British airline, Virgin Atlantic, which started twice weekly services to Mauritius this week, Russia’s first private airline will also fly to the island, contributing towards the tourism boom. Over 900,000 visitors are expected in Mauritius this year.
Transaero is already Russia’s second largest airline after Aeroflot. Russian visitors have increased by 30% annually these past two years and are expected to top 8,000 in 2007.
In Seychelles, visitors from Russia and some other Eastern European countries have increased these past two years, standing at 5,000 a year to date, arriving mostly via Dubai on Emirates Airlines.
The Aeroflot which started regular flights to Mahe soon after the 1977 coup d’Etat, when military ties with the former USSR were very strong, pulled out in 2001. By then, financial sustainability had taken over military considerations and Aeroflot, which had accumulated over ten million rupees in the banks, and was unable to repatriate the money. It was the first airline to provide an air link to Dubai and there were also rather good connections to various European destinations.
Following representations made by foreign airlines, the Government agreed in principle to allocate them 2.5% of total tourism earnings on condition that they maintain flights here. But, though this was useful in paying operational costs, it did not help clear the backlog in rupee earnings awaiting repatriation. Some foreign airlines, notably British Airways and Aeroflot pulled out altogether, while Kenya Airways threatened to follow suit. It has since insisted on payment in foreign currency.
Two years ago, Virgin Atlantic was also approached to start operations here. A delegation, headed by Vice-president Joseph Belmont was told in London that though Seychelles was an attractive destination, the airline was more interested in the North American and Caribbean routes... The uncertain load factor in Seychelles was also an important consideration... Virgin touched down this week at Sir Seewoosagur Ramgoolam International Airport, with its billionaire owner, Charles Branson, on board. It is the third airline after British Airways and Air Mauritius on the UK route.
Seychelles, on the other hand is entirely dependent on Air Seychelles for air links between Victoria and London... Air Seychelles CEO David Savy had sought a code-sharing agreement with British Airways, but this has been turned down.
