Senegal government takes major stake in its flag carrier

Senegal will take a majority 75 percent stake in its national flag carrier Air Senegal International (ASI) at the expense of its previously controlling partner Morocco's Royal Air Maroc (RAM), it said on Tuesday.

.

"(With) the management support by RAM having shown its limitations, Senegal has decided to re-take Air Senegal International," the transport ministry said in a statement after the company suffered a 19 million euro (27.4 million dollar) loss in 2006.

.

"Re-capitalisation of the company will only be assured by Senegal," with a new share distribution in which "Morocco would hold 25 percent and Senegal 75," it said.

.

The new shareholding structure takes effect on November 5.

.

The two airlines struck a deal in 2001 in which RAM was the controlling shareholder with 51 percent while the remaining 49 percent was held by Senegal, in what was hailed as a model of cooperation between African countries.

.

During its early days ASI flourished, plying west African routes deserted by the now defunct Air Afrique and linking the region with Europe.

.

It was selected the best African airline in 2003. — AFP