Senegal has established a special committee to oversee the restructuring of its national airline and a key airport holding company, as authorities push ahead with reforms aimed at restoring financial stability and improving governance in the aviation sector.
The government said the ad hoc committee, composed of public officials and private sector experts, will define a restructuring framework for both Air Sénégal and AIBD SA, which represents the state’s interests in the operator of Blaise Diagne International Airport.
The move is part of a broader reform drive launched earlier this year to address mounting financial and operational challenges facing the two entities, both of which are considered strategic to the West African country’s economy and connectivity.
Reform push gains pace
In February, Senegalese authorities set a 30-day deadline to accelerate key measures, including refinancing plans for Air Sénégal, a recapitalisation proposal and a comprehensive cost-efficiency audit.
The airline has already taken steps to curb losses by cutting or reducing frequencies on unprofitable routes, reflecting ongoing efforts to streamline operations after a period of financial strain.
At AIBD SA, management has pointed to structural challenges, including high staffing levels and rising operating costs, which have contributed to growing liabilities and weakened financial performance.
The restructuring committee is expected to coordinate reforms and ensure implementation of corrective measures, including tighter cost controls and improved management practices.
Plans for overhaul and expansion
Among the proposals under consideration is the creation of a new subsidiary, Air Sénégal Express, focused on domestic and regional routes, particularly within West Africa.
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The initiative aims to improve efficiency in short-haul operations and better align services with market demand, while allowing the main airline to focus on longer and potentially more profitable routes.
Authorities are also exploring the introduction of performance-based contracts to strengthen accountability and governance across the aviation sector.
In addition, the government plans to open parts of the business to private investment and pursue strategic partnerships to expand the airline’s regional footprint.
Analysts say such measures could help attract fresh capital and technical expertise, which are critical for turning around loss-making state-owned enterprises.
Balancing reform and strategic priorities
The success of the restructuring will depend on the government’s ability to mobilise financing, restore investor confidence and implement governance reforms that are often politically sensitive.
Efforts to cut costs and reorganise the workforce could face resistance, particularly given the importance of the aviation sector for employment and national prestige.
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At the same time, officials must balance commercial viability with the strategic role of national carriers in supporting tourism, trade and regional integration.
Senegal has positioned itself as a transport and logistics hub in West Africa, with Blaise Diagne International Airport serving as a key gateway for international and regional travel.
Strengthening the performance of Air Sénégal and its associated infrastructure is therefore seen as critical to the country’s broader economic ambitions.
The newly formed committee is expected to deliver recommendations in the coming months, setting the stage for what could be one of the most significant overhauls of Senegal’s aviation sector in recent years.
