The chief executive of Air Seychelles said on Thursday that privatization of the national airline would not serve the country's economic interests in the short term.

David Savy said the airline was formed first and foremost to support the island nation's tourism industry by bringing visitors to the archipelago regardless of profit margins, a purpose which a buyer may not give precedence to.

Seychelles President James Michel, when he came to power in April last year, said he would seek to liberalize trade and privatize the country's many parastatal organizations.

"In the first place, are there takers for the business? Probably not, but even if there were, a buyer would be coming to take Air Seychelles' market share, which would not work in the interest of Seychelles as a country," Savy said.

"Privatization is no longer a favorite of the airline industry, which is poised to lose USD$7 billion this year," Savy said. "I do not see how Air Seychelles would attract private funds when the returns on capital add up to less than 1 percent."

Savy said that Air Seychelles operated in the red during its first 14 years of existence with government support, but the country made up for the loss because the airline brought in 70 percent of all visitors to the country.

The airline has made profits over the past eight years, and the government has allowed it to hold on to them, Savy said.

"The government, which is the main shareholder has not drained the airline's funds... it has allowed us to reinvest in the company, which would not have been possible otherwise," he said.

The former pilot said the airline had been able to invest in infrastructure and staff development. The proportion of Seychelles nationals in the company has risen from 20 percent to 80 percent over the years.

"Air Seychelles is now a net exporter of human resources, and we have more Seychellois working for reputable carriers around the world than we have expatriates working here for us," he said.