
Air
Air
The Seychelles Government itself is currently maintaining an unsustainable debt portfolio. It has sought IMF Administration and signed a second IMF Standby Arrangement for US$ 34 Million which will last for another 3 years. Successive IMF Administration Standby Arrangements are very likely for a number of years, if not decades. The World Bank recently assisted Government of Seychelles with a US$ 9 Million loan assistance program, the repayment of which will take 25 years.
Air Seychelles for its part, secured three additional planes this year while the world went into a deep recession and air travel dropped to all time lows over -20% as the European industrial output dropped by -15.75% this year.
As Europe’s recession deepens, trips to long haul destinations such as the
What airline company in the world today can afford to lease planes and park them for a year, without placing them into a proper business plan of operation? How can any CEO or Chairman of any airline company justify this type of fat riddled business program?
21 Century Business Models
Business today is about maximizing our resources and putting them in play. As a business gets maximum output from its assets, it spreads its cost base and becomes more profitable. These planes need to be up in the air, flying with passengers.
But Colonel David Savy has told us that: “Air
What is The Money For?
The money is not for new planes. It is not for parts to keep the old Boeing 767-200 safe. It is not for marketing to put passengers on board and keep the passenger loads above 75%. The money is to be used to:
1. Reconfigure and redesign a business class seating arrangement. This is when business travellers are travelling now at an all time low, causing airline companies like British Airways that rely on that market segment for its profits to suffer a 240 Million Pound Sterling loss this year. Unprecedented in recent history.
Without regard for market forces and market indicators, Colonel Savy loves to spend money on refurbishments. Remember the renovation of the new office in
Remember the US$ 1Million spent on the water fountains and bamboo wall paper for the VIP Lounge at the
2. The money is also to be used for completing a building at the Cargo Terminal that Colonel Savy is supposed to use as his office in the future and terminate a lease from his wife’s family in town. Why does not Air
The reason why Air
Colonel Savy says to us that the Government of Seychelles cannot take any loans as it is a requirement of the IMF that they must have loans approved by IMF before proceeding.
Hence, the Parti Le Pep (P.P.) Government weasels around this condition, and drafts an appropriation bill, in the form of a supplementary budget for SCR 230 Million, and gives Air Seychelles SCR 30 Million to meet its overdraft requirements. Wise communist business style indeed!
What Is Wrong With Pierre Laporte’ Advice?
Why does Pierre Laporte tell us to go get loans from the banks to stimulate the economy and Air
The Seychelles Rupee gained 70% on the US Dollar in 2009. This is such an amazing feat that Bloomberg and Reuters are now comparing the Seychelles Rupee to the US Dollar regularly, and also to the Brazilian-Real and Mexican-Peso. But they also know our credit rating is SD (Selective Default) and that our economy collapsed last year. They are poking fun at Pierre Laporte and his funny rates. They just do not mention his name. But we do.
How To Save Air
The best way to save Air
How can Air
The airline business is not some mysterious business or more complicated than running a Tata bus line, except the engineering is aerospace not automotive. That is done mainly overseas. But the business thinking, the ideas, that make things happen for us all, come from the brain, not from the family bloodline.
This is the fundamental error Albert Rene and James Michel made when they argued against Mancham building the international airport. Simply put, Mancham was visionary while the other two were busy coming up with communist ideas and taking over the country by force.
Mancham did not put his family in place to run the show at the airport. He put the best man. People of
Be Prepared For Worse
With Etihad Airlines from
Michel’s Promises Will Finish Air
Meanwhile, President Michel is asking so much from these people in UAE in the form of favours, and giving land for one rupee in return. But Air
Air
Michel will allow Air Seychelles to lose market share in exchange for some crazy “Don Quixote” windmills that will never work in Seychelles, a little renovation at the hospital which our own Government should have funded had we planned and budgeted properly instead of doling out Social Security money to win elections or build District Administration buildings that are never used or create prawn and orchid farms that cost us millions of dollars that we did not have. Desalination plants were just the cream on top of the already bankrupt cake.
Is Air
Whether Air
New Opportunities
The Airport will still have to function, and a professional ground crew operations company hopefully not managed by Savy will still have to hire you in that sector. Those engineers that have trained and under the constraints we operate under will also find employment in aerospace engineering in
Remember, at one point we had British Airways and Air France flying Boeing 747s twice a week to
Most airlines literally took off never to return because Albert Rene promised them that they could repatriate their earnings in foreign exchange and of course this never happened. So the key is in marketing the
More airlines will mean more tourists to
Time To Retrain Skills
If you do not want to be based elsewhere, this is the time to stop complaining and retrain your skills. But get moving fast. In this economic downturn you can expect the worse. If you do not retrain your skills, do not blame Colonel Savy for that. Blame yourself. The downturn will last for many years, unlike Party Le Pep (P.P.) would have you believe. It is over and things will get better. Do not get caught in P.P.’s trap. And let Michel promote Savy to a Brigadier in his armed forces if he wants.
Downturn Will Last Many Years. Is Air
“Entre Nous”, in
P.P. will revamp the tax system according to World Bank and IMF instructions. They will drop business tax from 40% to 20%. While this is good, it won’t be enough to generate new business, create employment let alone create enough wealth for our country.
Without new businesses to generate enough taxes to run the country, the Government will continue to tax the same businesses and the tourism industry to death. As we are taxed to death, naturally, we will die.
What is needed in
This will allow us to pay down debts in reasonable time. P.P. does not have an answer for this in 2009 let alone 2010. So do not be fooled by optimists that believe their time on earth is shrouded in an inherent right to succeed in this economic atmosphere. We are in for a real down turn in 2010 and beyond.
It is true some market segments will do better like those that provide essential goods for living at better prices than the Ramadoss milk and juice factory, or STC for rice, etc.... but that is not a growth sector that creates wealth. It is only a survival sector. This will not create new jobs. In fact the poorly structured businesses will fail, because their model for growth is outdated and belongs to the Rene-Michel communist one party state era.
As this sector becomes the only viable sector, more and more people will join it and it will become more competitive. Large companies built on the communist model of business will of course fail. Do not hold your breath to think this will not happen. It is already happening around us. Reminds one of the NYS failure!
Hotel Industry Needs You Badly
Today, our hotel industry has at least 500 slots available for guest hostesses, front desk assistants, managers, and so forth. Your experience in dealing with passengers is a 100% boost to you getting a job. With that experience and corresponding dedication to the industry, your pay will be increased as well. With you in the industry, we will not have Filipinos or Mauritians greeting our tourists when they arrive at our hotel resorts.
A New Beginning For Us
All is not lost. Think of it as a new beginning. In life, we all have new beginnings. As Christians, the power of renewal in our hearts and minds keeps us fresh as we face the struggles of life and the great challenges the evils of Communism and cronyism bring into our lives.
Finally, at Air
When the domino falls, do not blame us who expressed opinions over the domino and exposed the truth. We were not the CEO or Chairman and we are not on those Boards either. Be brave and blame yourselves, blame the moderate communists. Because all of us who speak the truth and expose the evil in our country pay for our flights from our own pockets and do not fly Air Seychelles for free. And we do not send our furniture and private goods via free Air
May God Bless


