Monday, June 1, 2009

Breaking News! But Nothing New Here!



Victoria - Air Seychelles, the national carrier of the Republic, recently registered perhaps a record in airline aviation and that is carrying one (01) paying passenger, flying economy, on one of its Boeing 767 flights from Europe! This is a record which needs no further promotion by Air Seychelles but does lead one to ask, "how viable as a 'for profit' entity is Air Seychelles?" The government which owns the airline is out of money leading one to think that very soon very difficult decisions will have to be made.

Of other economic concern is the operations of the single largest employer in the country and that is Indian Ocean Tuna LTD. The ownership of this company is shared primarily between MW Brands and the government with some other minor shareholders.

On the 29th of May the IOT facility closed for its annual one month closure. The company normally uses the time to upgrade the facility, conduct training, and other renovations needed for a facility involved in food manufacturing.

In the past the IOT would normally choose the month of June as its primary 'shutdown' due to the country's 'heavy' holiday period!

Starting with celebrations for the 5th of June, the 'revolution' of the ruling party, leading into the 18th of June, the Seychelles' 'National' day, and ending with the 29th June, its independence day! Compared to the 5th June, Independence Day for the ruling party has always been lower key.

Several days of festivities, ten days plus of 'good times', has always meant that private businesses have tended to confirm leave for its staff for this month due to projected heavy absentisms and low productivity. A heavy cost and burden which the country still carries on the back of its citizens.

The IOT shutdown this year takes on a different 'air' about it this time as sales to Europe remain low while inventory backlog remains steady. Despite the best attempts by the company group to effectively 'manage' this, internally there are worries that the heavy debt load of the company cannot long be carried.

There are other concerns of course for the country as the government currently led by the ruling SPPF continues to talk of 'hope' and looking to the silver lining in the clouds and continues on its path of looking for change on the one hand while on the other, drawing a new line in the sand, looking for ways to continue it's grip of power on the tiny Republic.

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