• Reforms target refinancing, cost cuts, governance improvements

• Plans include new regional subsidiary, potential private investment

Senegal on Monday set up an ad hoc committee to oversee the restructuring of Air Sénégal and AIBD SA, the state asset-holding company representing the government in LAS (Limak-Aibd-Summa), the operator of Blaise Diagne International Airport in Diass.

The committee, composed of public administration officials and private sector experts, is tasked with defining a restructuring framework for both entities.

Reform Drive
 The move reflects the government's push to follow through on reforms announced several months ago. In February, authorities set a 30-day deadline to accelerate implementation of several measures, including the launch of Air Sénégal's refinancing, the submission of a definitive recapitalization proposal, and the completion of a cost-efficiency audit alongside the adoption of a corrective action plan.

Air Sénégal has in recent months cut or reduced the frequency of several routes deemed unprofitable after periods of operating losses. At AIBD SA, management in March 2025 presented an assessment attributing the company's difficulties to excessive staffing levels and rising operating costs, which have led to a buildup of liabilities.

Planned Overhaul
 Among the measures under consideration is the creation of Air Sénégal Express, a subsidiary dedicated to domestic and regional routes, particularly to neighbouring countries. The aim is to streamline operations and improve profitability on short-haul markets. The government also plans to introduce performance contracts to strengthen governance, open the subsidiary to private investment, and establish strategic partnerships to expand the carrier's regional footprint.

The success of the restructuring will hinge on the authorities' ability to mobilise financing quickly, restore confidence among technical and financial partners, and push through governance reforms that are often politically sensitive. Balancing cost reductions, workforce reorganisation and attracting private investment, the government will need to strike a balance between profitability and preserving the strategic role these companies play in the national economy.

Henoc Dossa