Air Sénégal sinking despite various recovery plans

Public Funds, Private Troubles

The crisis has escalated into a legal and financial dispute. The International Air Transport Association (IATA) has placed 2 billion CFA francs (approximately USD35 million) in escrow, pending the airline’s settlement with Carlyle. The airline’s management strongly objected, accusing IATA of overstepping its authority in what it considers a purely commercial matter.

Adding to the airline’s woes, two other leasing firms—Sasof III Aviation Ireland DAC and Aergen Aircraft Twenty Limited—have filed cases with the Dakar Commercial Court, seeking payment for outstanding dues.

Despite repeated state interventions and financial lifelines, Air Sénégal remains mired in debt, estimated between USD122 million and USD153 million. The company already received a USD325 million injection of public funds and undergone several restructuring attempts. None of which have yielded long-term stability.

The national airline’s turbulent history dates back to 2009, when Air Sénégal International, a joint venture between Senegal and Morocco, collapsed. Its successor, Sénégal Airlines, also folded in 2016. Air Sénégal launching in 2018 had the ambitions to become a regional aviation leader, equipped with modern aircraft and an expanded network.

However, poor management and an unsustainable business model have quickly derailed those ambitions. Frequent technical groundings and an overly ambitious route map have contributed to the crisis.

Skeletal network

In September 2023, the airline already dropped routes from Dakar to Marseille, Lyon, New York, Milan, Barcelona, Libreville, and Douala in a bid to stem losses.

Last April, the government attempted a new stimulus plan by cutting certain routes, particularly to Central Africa.

Air Sénégal consequently maintains today only one intercontinental route from Dakar to Paris CDG. An Airbus A330 serves the route on a daily basis. In total, the airline flies to 8 countries out of Dakar, serving 9 destinations. On the domestic front, the carrier flies daily from Dakar to Cap Skirring and return. Without managing to turn things around despite its network having become skeletal.