TAAG Angola Airlines (DT, Luanda 4 De Fevereiro) and Boeing have resolved outstanding financial issues between them, creating "a new cooperation environment for aircraft supply in the future", the state-owned airline announced.
Following ten months of "long and complex negotiation" since the new administration under Chief Executive Officer Eduardo Fairen assumed office, TAAG and Boeing "have reached an agreement regarding the amount and payment method related to financial issues pending", the airline said in a statement on September 11. The amount involved was not disclosed.
"This agreement updates some premises of the Memorandum of Understanding (MOU) signed between the parties, assuring TAAG with better services pricing than before, aligned with the aviation sector benchmark."
"TAAG highlights the collaborative approach of Boeing representatives throughout this process, as we also show our appreciation for all the support given to our strategy to recover aircraft and reinforce the fleet ahead," commented Fairen.
"Overall, this arrangement reinforces TAAG's international credibility and sets a clear statement that the company is active in the business and open to dialogue with all stakeholders," the carrier stated.
It is understood that TAAG was keen to find a solution with Boeing to build its credibility ahead of a contest for the wide-body fleet between Boeing and Airbus, an announcement of which is targeted for the Paris Air Show in June 2023.
Boeing declined to comment.
In 2018, TAAG was looking to acquire an unspecified number of B787-8s from Boeing to replace its ageing B777-200ERs. Then CEO Rui Carreira said the airline planned to use funds previously deposited with Boeing for unwanted, optioned B777-300ERs.
According to TAAG's latest management report, the airline signed two Memoranda of Understanding (MoUs) with Boeing in the financial year ending December 31, 2019, to acquire 14 aircraft. It had paid a corresponding pre-delivery payment of USD2.86 million.
Given economic conditions and "respective uncertainty about the execution of the contracts", TAAG's board in 2019 had decided to recognise "an extraordinary amortisation/provision for advanced amounts to Boeing, despite considering that as a result of the negotiations to be carried out with the supplier, the amount may/should be used in the acquisition and/or provision of services between the parties". The extraordinary amortisation remained on the balance sheet on December 31, 2021.
In 2021, the board obtained an appraisal prepared by an independent expert, which concluded that some of TAAG's aircraft weren't worth their acquisition/revalued cost. "Thus, the board of directors, as of December 31, 2021, recognised extraordinary amortisations in the amount of AOA40.425 billion kwanza (USD72.765 million at the time)," according to the airline management report for the year 2021.
As reported, Angolan President João Lourenço, in April 2019, ordered the indefinite deferral of the MoUs for fleet renewals and the reversal of all financial transactions with aircraft suppliers. His decision came after the International Monetary Fund (IMF), which had approved a USD3.7 billion extended credit facility to Angola, had raised concern over the unsustainability of the country's debt.
According to the ch-aviation fleets module, TAAG's current fleet comprises 20 in-house aircraft, including five B737-700s, one B737-700(QC), three B777-200(ER)s, five B777-300(ER)s, and six DHC-8-Q400s.
