Congo Airways, which had recently converted an order for Embraer E175s to E190-E2 aircraft in an attempt to grow while its competitors struggle, was recently bankrupt, local media reported a month ago. Now, however, the carrier has managed to secure US$ 1 million in state aid through the government-managed Industry Promotion Fund (FPI).
Congo Airways Embraer E190 E2. Rendering by Congo Airways
While the airline has yet to confirm it was nearing bankruptcy, local media are making it clear that the carrier has been struggling for a while now with its issues stemming from mismanagement in addition to an evident lack of revenue due to the coronavirus crisis.
Congo Airways, which is banned from flying to the European Union due to poor safety standards and oversight by the country's aviation authority, recently converted an order for 2 Embraer E175s for 2 Embraer E190-E2s. The airline also has purchase rights for two additional E190-E2s. The initial order for E175s was placed back in December 2019, while the conversion was made in May 2020.
"I said in December that we may need to make an additional order for E2s due to the agility required to adapt to market changes – we have now reached that point. As we prepare for future success, we will have the flexibility, and the right sized, most efficient aircraft, to serve our customers as the market returns," Congo Airways' CEO, Désiré Balazire Bantu, said in May.
Congo Airways intended to take advantage of its struggling competitors, namely South African Airways and increase its market share through further growth brought through fleet expansion. The Embraer E190-E2s are set to replace the carrier's Dash 8 Q400s, of which it has 2. However, the new airframes are set to be delivered in May 2020.
Congo Airways currently has a fleet of 2 Airbus A320s, one of which is currently stored at Casablanca. It also operates 2 Bombardier Dash 8 Q400s.
The latest injection comes as Congo Airways prepares to relaunch regular services in the coming days.
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